General Hydrocarbons Limited (GHL), a Nigerian oil and gas services company, has been granted an ex-partee order in connection with a disputed $225.8 million loan, and the Federal High Court sitting in Lagos has annulled it.
Justice Deinde Dipeolu’s decision in a three-hour decision was the first to determine whether his court had the authority to hear the case during the 2024 Christmas vacation.
The court determined that the economy’s main drivers are the banking and oil sector activities, and that the court should give the case, which involved General Hydrocarbons Ltd., priority over matters that promote financial responsibility and stability, which are constrained by the country’s financial economy.
Additionally, Justice Dipeolu argued that the court had the authority to handle the case during the absence of a court member because the suit’s assets are oil assets and the amount of money involved makes it an urgent national interest.
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The court addressed another question, asking whether the interim orders it gave on December 30th, 2024, were based on false information and material information concealment.
Remember that Justice Dipeolu, who issued an interim Mareva order on December 30th, 2024, revoked those restrictions on the release of funds or handling assets held by General Hydrocarbons Limited and its officials, including media mogul Nduka Obaigbena.
In response to the parties’ ongoing arbitration proceedings, General Hydrocarbons claimed that First Bank was oblivious to Justice Diepolu by the fact that the bank was prevented from imposing any security or assets on December 12, 2024.
The plaintiffs had merely disclosed that there are preservative orders of court without attaching the same to its motion exparte triggering the interim orders of the instant court, leading to the court’s decision after carefully reading Justice Allagoa’s ruling.
Justices Dipeolu added that the current lawsuit is not an abuse of court order because the parties involved in the case are different, just as the parties’ causes of action are different despite the parties being involved in the same transaction.
The court ruled that General Hydrocarbons and First Bank’s arbitration proceedings were “resolved by Allagoa J..” On the other hand, the bank’s lawsuit before the instant court carries a “border on the credit facilities between the two parties.”
According to the foregoing, First Bank has been prevented from making any calls or demands or undertaking any actions in relation to General Hydrocarbon’s operation under OML 120 pending the hearing and determination of the applicant and the respondent’s arbitration proceeding.
“Although the interim orders issued by this court on December 30th, 2024 relate to the subsequent facilities agreement between the Ist Plaintiff and Ist Defendant and do not include the receivables in the agreement of May 29, 2022, the present lawsuit appears to be similar to FHC/L/CS/I1953/2024 (the case before Alaggoa J.). ), is not an abuse of process, however in view of the orders of Allagoa J. made on the 12th of Dec., 2024, the Mareva order granted by this court on Dec. 30, 2024, is hereby set aside.
The defendants are asking for a court order to overturn the complaint because the defendants are accused of gross abuse of court procedure and have no jurisdiction over the matter in the application filed by Nduka Obaigbena and four other individuals who are General Hydrocarbons officials.
The 5 defendants are free to raise the issue of court jurisdiction at any time before judgment, according to Justice Dipeolu, because of the court’s Dec. 30-2024 Interim orders.
Source: Channels TV
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