Court issues judgment on NNPC, PPMC’s N4.7 billion in First Bank
The Federal High Court in Lagos has given a judgement between 23 Nigerian banks where the Petroleum Products Marketing Company Limited (PPMC) and Glonik Industries have accounts in.
In the judgment delivered, Judge Ambrose Lewis-Allagoa of the Federal High Court, Lagos has discharged the 22 banks from the N4,705,139, 686.78 garnishee proceeding filed by Glonik Industries Limited and Glonik Hotels limited, against the oil firms.
Judge Lewis-Allagoa in a judgment on May 16, 2023, in a suit filed by Glonik Industries Limited and Glonik Hotels Limited, ordered NNPC and PPMC to pay the sum of N4,705,139,686.78 for the demolition of the hotel building situated at number 33, Wamom Taofeek Street, New Okoba, Lagos belonging to the Plaintiffs.
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Following the judgment, Justice Lewis-Allagoa also in a garnishee proceeding ordered the attachment of the judgment sum to 23 banks and directed them to show cause why the sums standing to the credit of the defendants who are Judgement Debtor’s credit in their various accounts should not be attached to satisfy the judgment debt.
The Court directed that all debts due or sums accruing from the banks to the Judgement Debtors be attached to answer a judgment secured against the Debtors for the payment of N4,705,139,686.78.
Justice Allagoa also directed the banks to appear in court to show cause as to why they should not pay to the Plaintiffs, the judgment sum from the monetary sums due from the banks to the defendants, in satisfaction of the Judgment Debt.
However, when the matter came up, counsel to the defendants, Wale Akoni SAN in an application filed and argued before the court, urged the court to vary the Garnishee Order, and limit it to the 6th Garnishee (First Bank of Nigeria Limited), submitting that the defendants’ funds in First bank were enough to satisfy the judgment sum.
Consequently, he urged the court to discharge the other 22 banks to enable the Defendants to carry out their businesses.
Justice Allagoa in his ruling granted the request and discharged other banks except for the 6th garnishee bank, First Bank.
The Plaintiffs in their statement of claim filed before the court stated that sometime in 2017, the Defendants invaded the GLONIK Industries’s property Glonik Hotels used for its hotel/hospitality business on the pretext that NNPC (1st Defendant) pipeline was being vandalized from the property, arrested some members of the staff of the Hotel alongside the chairman, sealed the property and stationed their task force at the property denying the plaintiffs access to the property.
The Plaintiffs added that the entire building was then demolished by the Defendant, adding that the demolition was done without any order of a court.
Specifically, GLONIK Industries stated that it obtained building approval from the Lagos State government before the building was erected on the land.
Consequently, the Plaintiffs sought ‘’a declaration that the sealing, demolishing of their building situated at 33, Wamom Taofeek Street, by Social Club Road, New Okoba, Lagos and carting away of all items was illegal.
Among the prayers of the plaintiff is a demand for a sum of N840,879,686.75 being the fair and estimated value to replace the hotel.
Also, the plaintiff sought the sum of N3,863, 160,000 being the loss suffered as a result of the breach of contract between the Hotel and Ignite Energy Limited induced by the Defendants as a result of the sealing and destruction of the plaintiff’s hotel.
In addition, was the prayer for the sum of N1 billion as general damages, and an additional N1 billion as exemplary damages for Defendants’ wrongful conduct.
However, the Defendants in their statement of defense and counterclaim dated 13th of October, 2022 prayed the court for a declaration that the activities of the Plaintiffs to the Defendants’ Pipeline Right of Way at Atlas Cover-Mosimi are illegal and unlawful.
Therefore, Defendant prayed to the court for ‘’An Order for the sum of N500 billion to be paid to the Defendants jointly and severally by the Plaintiffs as general damages due to the Plaintiff’s act of economic sabotage to the Defendants’ facilities.
Justice Allagoa in his judgment declared that ‘’In all, the Plaintiffs have proved their case on the preponderance of evidence but the Defendants have failed to prove their counterclaim”. Reliefs A, B, C, and E in the sum of N4,704,030,686.75 is hereby granted as prayed”.
©INSIDEBUSINESS
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