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Court orders FG to pay Capital Oil/ Ifeanyi Ubah N26b [update]

Federal High Court in Abuja ordered AMCON to pay Capital Oil and Gas Limited the sum of N26 billion  as contained in the consent judgment delivered in 2013.

The Federal High Court in Abuja on Thursday ordered the Asset Management C‎orporation of Nigeria (AMCON) to pay Capital Oil and Gas Limited the sum of N26 billion  as contained in the consent judgment delivered in 2013.

The Federal High Court in Abuja on Thursday ordered the Asset Management Corporation of Nigeria (AMCON) to pay Capital Oil and Gas Limited the sum of N26 billion  as contained in the consent judgment delivered in 2013.

The court presided over by Justice Abdul Kafarati in his judgement restrained AMCON from exercising any powers over Capital Oil and Gas Limited and its assets.

Justice Kafarati also restrained AMCON from processing any assignment and transfer among others.

He further advised to live up to its statutory responsibility of reviving the nation’s economy through positive supports for businesses to thrive.

The court went further to grant all the reliefs of the plaintiff and made the following orders:

“An order compelling the defendant (AMCON) to comply with obligations to restructure the plaintiff’s debt and to provide Trade Finance Facility in the sum of 16 Billion Naira for revamping of the plaintiff’s business and to pay the plaintiff’s trade creditors.

“An order compelling the defendant to comply with the consent judgment and to make the additional sum of N10, 590, 000, 000 Billion naira available to the plaintiff for the payment of sundry creditors who continue to threaten the plaintiff’s business.

“An order of injunction restraining the defendant from exercising any powers over the plaintiff and its assets and from processing any assignment, transfer or other demise whatsoever or requesting for statutory consent or other approvals for the transfer or other demise of any rights in the assets of the plaintiff,” Justice Kafarati said.

In his reaction shortly to the judgment, counsel to the plaintiff, Ajibola Oluyede, described the verdict as a “landmerk decision” that is rooted in the vision of the founding fathers of AMCON, urging AMCON to adhere to the position of the court by living up to its statutory billing in providing the needed support for businesses to flourish with the ultimate goal of creating jobs for the citizenry.

It would be recalled that a Federal High Court, Lagos Division, had on May 6th struck out the suit commenced by AMCON against Capital Oil and Gas Industries Limited on the grounds that the suit was premature and seeks to circumvent existing suits in different courts on issues relating to the alleged indebtedness of Capital Oil and Gas which is currently under dispute.

This was the basis of an order by the judge, Justice Idris, striking out a petition filed in the court by AMCON for the freezing of Capital Oil and Gas’ accounts and winding up of Capital Oil and Gas Ltd  for its alleged inability to pay the disputed debt.

In the ruling delivered on 6th May 2016 in Suit No. FHC/L/CP/506/2016, the judge upheld the contention of Capital Oil and Gas’ counsel, Ajibola Oluyede, represented by Michael Damiari, that the winding up proceedings filed by AMCON against Capital Oil and Gas was intended to circumvent the existing actions in suits FHC/ABJ/CS/430/15; FHC/ABJ/CS/514/15 and FHC/L/CS/1529/15 where-in live issues pertaining to the consent judgment in FHC/ABJ/CS/714/2012 which is the subject matter of the winding up petition are pending.

According to the court “until the issues raised in those suits are determined, it will be premature to say the judgment debt has crystalized as provided in clause 2.4 of the consent judgment”.

The Federal High Court, Lagos Division, had also struck out the suit commenced by AMCON against Capital Oil and Gas Industries Limited.

The court struck on the ground that the suit is premature and seeks to circumvent existing suits in different courts on issues relating to the alleged indebtedness of Capital Oil and Gas which is currently under dispute.

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