January 29, (THEWILL) – In a landmark victory for General Hydrocarbons Limited, the Federal High Court in Lagos has set aside an order of Mareva injunction freezing the assets of the company and its directors.
The court, while upholding the arguments of GHL’s counsel, Abiodun Layonu, SAN, held that the injunction violated an existing order from a court of concurrent jurisdiction.
In his ruling, Justice Dehinde Dipeolu, stated that when compared with an earlier order issued by Justice Ambrose Lewis-Allagoa in Suit No. 1953, the Mareva Injunction should be set aside.
The court found that First Bank of Nigeria and FBNQUEST LTD, at whose instance the order was procured, failed to fully disclose Justice Lewis-Allagoa’s order, which made the Mareva Injunction incompatible with the earlier ruling.
The court consequently agreed with GHL that First Bank deliberately “suppressed facts” to mislead the court into granting the order against GHL.
First Bank had approached the court via an ex-parte application against General Hydrocarbons Limited and 15 other entities even when there was a subsiting judgement.
Responding to the suit, GHL urged the court to discharge the order freezing its assets and accounts on the grounds that the court was misled in granting same. The oil firm argued that the order was obtained through fraudulent misrepresentation and concealment of material facts.
GHL and other applicants accused First Bank of misleading the court to obtain orders against them. They argued that had all the facts been presented before the trial judge, the order against them would not have been granted.
The trial judge upheld GHL’s arguments and consequently set aside the freezing order.
Meanwhile, GHL directors who were also negatively affected by the ex parte freezing order have begun proceedings worldwide against First Bank, seeking $1bn each in damages for defamation and wrongful freezing of their accounts.
GHL is also bringing a case in the Legal Practitioners Privileges Committee against First Bank lawyers, Babajide Koku, SAN, and Victor Ogude SAN for unprofessional conduct.
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