The Federal High Court in Lagos has reversed an order of Mareva injunction obtained by First Bank freezing the assets of Global Hydrocarbons, an oil & gas firm, and those of its directors up to the sum of $225.8 million.
Justice Deinde Dipeolu ruled that the injunction contravened an existing order from a court of concurrent jurisdiction. He noted that, compared with an earlier order granted by Justice Ambrose Lewis-Allagoa in Suit No 1953, the order in question should be set aside.
First Bank and FBN Quest Trustees did not completely disclose at the point of seeking the order the previous order issued by Justice Lewis-Allagoa, making the Mareva injunction to be in conflict with the previous ruling, the court said.
The lender and FBN Quest Trustees had on 27 December 2024 approached the court with an ex-parte application to seek the order in respect of a total claim of $225.8 million being alleged outstanding indebtedness on General Hydrocarbons’ account with First Bank as of 30 September 2024.
The court had granted the order restraining all commercial banks in Nigeria from releasing or dealing in all monies and assets up to $225.8 million due to Nduka Obaigbena from any account maintained by him.
Mr Obaigbena, who owns Global Hydrocarbons, is the Chairperson and editor-in-chief of THISDAY Media Group and Arise News Channel.
The court also blocked all commercial banks from releasing or dealing in all monies and assets up to the said amount belonging to Efe Damilola Obaigbena, Olabisi Eka Obaigbena and General Hydrocarbons Limited in which all three are directors and shareholders.
Another order barring the banks from dealing in or releasing such monies and assets due to the company, its agents, privies, subsidiaries and sister companies with the banks up to the same sum was issued.
In reaction, Global Hydrocarbons and some of the defendants requested the court to cancel the order, asserting that the court was misled in granting it in the first place.
The energy firm claimed First Bank and FBN Quest Limited secured the order by way of fraudulent misrepresentation and concealment of material facts.
In his ruling, Justice Dipeolu agreed with Global Hydrocarbons and the 2nd to 5th defendants that the bank intentionally “suppressed facts” to mislead the court into issuing the order.
In view of the facts, the court stated that it had to set aside the freezing order blocking the accounts of the company and those of other defendants.
READ ALSO: Obaigbena’s General Hydrocarbons sheds more light on conflict with First Bank
The judge accepted the arguments of the defendants’ lawyers, Abiodun Laniyonu (SAN) and Olumide Aju (SAN).
In a related development, Global Hydrocarbons directors, who are among the defendants in the case, have initiated legal proceedings against First Bank demanding $1 billion each in damages for defamation and the wrongful freezing of their accounts.
Global Hydrocarbons is also launching 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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