ENigeria News had on Wednesday reported that First Bank, under the chairmanship of Nigerian businessman Femi Otedola, was disgraced by the judgment of the Federal High Court, which unceremoniously threw out the lender’s case against General Hydrocarbons owned by Nduka Obaigbena.
ENigeria News reports that the Federal High Court laid aside the entire lawsuit, adding that it lacks the jurisdiction required to hear the case while upholding General Hydrocarbons’ preliminary objection challenging the court’s jurisdiction.
According to the judgment delivered by E.A. Obile, the case was thrown out for an “abuse of court process and a breach of the orders issued by Justice Ambrose Lewis-Allagoa of Federal High Court Lagos on 12 December 2024 in Suit No. FHC/L/CS/1953/2024.”
According to the court, First Bank stated in its counter affidavit opposing Geneal Hydrocarbons’ notice of preliminary objection that the order issued by Justice Lewis-Allagoa prevented it from enforcing any receivables pertaining to the facility agreement reached by the two parties.
The court further stated that the bank’s attempt to distinguish the instant suit from Suit No. FHC/L/CS/1953/2024 could not remain valid, given that the subsequent agreement entered into by both parties was in accordance with the memorandum of understanding between them, which First Bank breached many times over.
By the instant suit, the court said, First Bank approached the court to do what Justice Lewis-Allagoa restrained it from doing, making the lender’s action an abuse of court process.
The court equally upheld General Hydrocarbons’ contention that the ex parte orders of 9 January 2025 had lapsed by the operation of law and dismissed them on that ground.
The orders comprised an order to arrest and/or attach or lien the entire oil cargo on board the floating production storage and offloading (FPSO) vessel Tamara Tokoni and an order requiring the officers of the Nigerian Navy, NUPRC, NIMASA, and the harbour master of the Nigerian Ports Authority to provide necessary assistance to the admiralty marshal of the court in enforcing the order of arrest.
Obaigbena’s General Hydrocarbons to Sue First Bank for Million of Dollars Damages
General Hydrocarbons said in its statement Tuesday night that the court’s decision now clears the path for proceedings to be held at the Lagos Court of Arbitration, where the energy company is seeking hundreds of millions of dollars in damages against First Bank.
First Bank Throwing Tantrums After Losing to General Hydrocarbons
Meanwhile, First Bank has not stopped throwing tantrums over the court ruling, which didn’t turn out in its favour.
ENigeria News reports that First Bank filed an appeal against the decision of Federal High Court Port Harcourt dismissing the suit it initiated against General Hydrocarbons.
The Femi Otedola-led bank observed in a statement Tuesday night that the court held that the matter is not a maritime claim but rather a debt recovery case.
It expressed its dismay at the court’s declaration that the arrest order against the cargo on the FPSO expired by effluxion of time within 14 days of its issuance, considering that it was ex parte in nature.
Given its dissatisfaction with the ruling of the court, the bank has appealed against the decision. Likewise, First Bank said it filed an appeal against General Hydrocarbons, pending the determination of the appeal.
