… Judgement Perversed, Can’t Stand Test Of Time
Ecobank Nigeria Limited, on Wednesday, said it will
appeal a judgement of the Federal High Court in Lagos which delivered a
judgment in favour of Honeywell Flour against the bank.
The Court presided over by Hon. Justice Liman had ordered Ecobank to pay the sum of N72 billion to Honeywell.
But, on Wednesday, the bank said it believe that the judgment is perversed and cannot stand the test of time.
It also noted that it would vigorously challenge same,
and remain confident that it can reverse this judgment at the higher
courts.
Sources from the bank stated that the instant suit was
an action filed in 2018 for the enforcement of the Bank’s Undertaking as
to Damages which was filed in pursuance of its Winding Up Petition and
the Ex-Parte Orders which were granted in favour of the Bank.
“We challenged the action through a Notice of
Preliminary Objection dated 16th October, 2018 whereby we challenged the
jurisdiction of the Federal High Court, as (among other reasons), the
action did not fall within the provisions of Section 251 (d) of the
Constitution, being that the subject matter of the suit was for the
Claim of Damages arising out of an Ex-Parte Order, as opposed to a
Banker-Customer relationship. Trial was concluded in this matter since
9th March, 2021 and the parties adopted their final written addresses
alongside our Notice of Preliminary objection on the 16th March, 2022,
the Court then adjourned the matter to 27th May, 2022 for judgment.
While the court failed to deliver judgment on the said date, the
registrar of the court promised to inform counsel whenever the judgement
was ready”.
“In the wake of the Supreme Court’s decision in the
Bank’s favour, in Suit No. SC/CV/210/2021 which was delivered on 27th
January 2023, the bank further filed a Motion on notice dated 9th March,
2023 to dismiss the Suit on the grounds that same has become academic
as a result of the judgment entered in favour of Ecobank wherein the
Supreme Court held that Honeywell remained indebted to the Bank. The
Court heard motion dated 9th March, 2023 and adjourned to 23th June,
2023 for ruling on our two applications and also for delivery of
judgment. The Court consequently delivered the said ruling/judgment
today July 18 via a virtual proceeding at about 4pm. In its Judgment,
the Court dismissed the two applications we filed, holding that it has
jurisdiction to entertain the suit and also that the suit had not become
academic”.
According to the bank, In reaching its judgment, the
Court ignored/refused (among others): Submissions showing that the
Ex-Parte Orders were discharged on points of law and not that it was
frivolously obtained by the Bank; that the Ex-Parte Order lasted for
less than 2 weeks, contrary to the Claim of Honeywell which was said to
have covered the period of three years; that the documents presented by
Honeywell particularly the annual returns did not show the alleged
damage, hence same was indeed non-existent; that documents from various
other Banks who were served with the ex-parte order showed that the
Honeywell companies were indeed highly indebted to them, hence there was
no way the Ex-Parte Orders would have frozen funds in the said Banks;
and more importantly, the Court refused all the objections regarding the
documents maliciously prepared by Honeywell for the sole purpose of
instituting the Suit and claiming unjustifiable sums from the Bank.
The bank reiterated that it is a member of the Ecobank
Group, the Pan-African Bank which is proudly and fully committed to
transparency in all the countries where it operates, and abide by laws
and regulations. It believes that this matter should be conclusively
determined in line with the applicable judicial process.
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