HC stays Unilever Bangladesh’s distribution restructuring
The High Court Division of the Supreme Court of Bangladesh has stayed a proposed restructuring of the distribution network of Unilever Bangladesh Limited, directing that existing distributors shall continue their operations until the dispute is resolved.
On March 9 of 2026, a Division Bench of the Hon’ble High Court Division comprising their Lordships Justice Md. Nazrul Islam Talukder and Justice Mahmud Hasan issued a Rule and passed ad-interim Orders of stay and direction on the civil revisional applications filed by Agrani Trading Corporation Limited and Masud & Brothers-two long-standing distributors in the country’s fast-moving consumer goods sector.
The HC issued a rule upon the respondents to show-cause as to why the order of January 29 passed by the Second Additional District Judge’s Court, Dhaka shall not be set aside.
At the time of issuing the Rule, the HC also stayed operation of the proposed distribution arrangement between Unilever Bangladesh and Vector Enterprise for a period of one year. The order effectively suspends the appointment of Vector Enterprise as a distributor.
The court further directed that Agrani Trading Corporation Limited and Masud & Brothers be allowed to continue their distributorship businesses with Unilever as per their agreement during the pendency of the Rule.
In connection with the proceedings, the High Court issued Rule directing several officials of Unilever Bangladesh to respond to the allegations. Those named includes, amongst others, Managing Director Md. Naharul Islam Molla, Finance Director Zinia Huq.
The High Court proceedings come amid a series of legal developments involving Unilever Bangladesh and its officials.
Earlier this year, the Dhaka court issued summons against the company and certain officials in connection with arbitration proceedings initiated by Agrani Trading Corporation Limited and Masud & Brothers.
In a separate case, a Dhaka court issued arrest warrants against five senior officials of Unilever Bangladesh in a fraud case filed by Masud & Brothers, after the Criminal Investigation Department (CID) found prima facie evidence.
Additionally, the High Court had earlier issued a contempt rule against company officials for alleged non-compliance of a prior court order related to the distributorship dispute.
Agrani Trading Corporation Limited and Masud & Brothers welcomed the High Court’s order, stating that it ensures continuity of their operations and protects existing commercial arrangements.
They said they remain committed to safeguarding lawful business agreements, maintaining stability in Bangladesh’s FMCG distribution sector, and pursuing resolution through the judicial process.
