A COMPANY supplying CDs and DVDs to Tesco Ireland has sued over some €3.9m allegedly outstanding for certain goods supplied on dates from 2006.
Beaumex says it was unaware of the alleged "serious underpayments" until its former financial manager had "a nervous breakdown" after becoming "simply overwhelmed" by dealings with the retail giant.
While Tesco had agreed to make some €1.1m in payments, some €3.9m remains outstanding, Beaumex claims.
When the company, with offices in Walkinstown, Dublin, became aware of the issue, it notified Tesco Ireland.
Tesco Ireland provided remittances to facilitate the task and agreed to pay €1.1m for the years 2009-2011, David Moloney, a director of Beaumex, said. The meetings with Tesco Ireland were "fairly cordial" but protracted -- as it appeared a lot of Tesco Ireland's finances are run through India, he said.
But an impasse was reached in recent weeks, leading to the Beaumex board deciding to issue court proceedings, he said.
Yesterday, Mr Justice Peter Kelly in the Commercial Court was told by Brian O'Moore, for Tesco Ireland, it objected to the court fast-tracking the case.
As the judge refused to fast-track the case, it will now go through the High Court.