The Federal High Court in Lagos has set aside ex parte Mareva orders that froze the assets of General Hydrocarbons Limited (GHL), a Nigerian oil and gas services company, and its directors.
The court ruled that the injunction violated an existing order from a court of concurrent jurisdiction.
The court, while upholding the arguments of GHL’s counsel, Abiodun Layonu, SAN as well as the arguments of Olumide Aju, SAN representing the 2nd to 5th defendants in the case, held that the injunction violated an existing order from a court of concurrent jurisdiction.
Justice Dehinde Dipeolu, in his ruling, 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 had failed to fully disclose Justice Lewis-Allagoa’s order, which made the Mareva Injunction incompatible with the earlier ruling.
The case stemmed from an ex-parte order granted by Justice Dipeolu on December 30, 2024, in Suit No. FHC/L/CS/2378/2024, filed by First Bank of Nigeria against General Hydrocarbons Limited.
At the sitting Wednesday, the court consequently agreed with GHL and the 2nd to 5th defendants that First Bank deliberately “suppressed facts” to mislead the court into granting the order against GHL.
The court said it had no choice but to set aside the order freezing GHL accounts as well as the accounts of all the other defendants in the case.
First Bank had approached the court via an ex-parte application against General Hydrocarbons Limited and 15 other entities even when there was a subsisting judgement.
Responding to the suit, GHL and some of the defendants 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. (Thisday)
