Nduka Obaigbena Accuses First Bank Of Abusing Court Process In $225m Debt Dispute

Nduka Obaigbena’s General Hydrocarbons Limited has urged Nigerian banks not to freeze its accounts and assets, following a December 30, 2024, court order by Justice Deinde Dipeolu of the Federal High Court in Lagos.

The order stems from allegations by First Bank of Nigeria Limited and FBNQuest Trustees Limited that General Hydrocarbons owes approximately $225.8 million in outstanding loan debt as of September 30, 2024.

KanyiDaily earlier reported that the Federal High Court granted an ex-parte order freezing General Hydrocarbons’ assets and accounts with all Nigerian commercial banks.

This action aims to prevent Nduka Obaigbena’s company, General Hydrocarbons Limited company, from transferring or depleting its funds during ongoing legal proceedings.

General Hydrocarbons, however, has strongly opposed the court order, warning First Bank and its directors of severe legal consequences if its operations are disrupted or if any losses are incurred.

The company’s legal counsel, Dr. A.I. Layonu (SAN), has filed a “Notice of Existence of Prior Order of Court” challenging the recent Mareva orders in Suit No. FHC/L/CS/2378/2024.

According to Layonu, there is an existing judgment in Suit No. FHC/L/CS/1953/2024, issued by Justice Allagoa on December 12, 2024, which prohibits First Bank from seeking or enforcing the Mareva orders granted on December 30.

In a statement dated January 9, 2025, Layonu advised all affected parties to seek clarification from the court on the conflicting rulings.

He further disclosed that General Hydrocarbons only learned about the December 30 Mareva orders on January 7, 2025. These orders effectively restrict the company’s access to $225.8 million, the amount First Bank claims as outstanding debt from loan agreements.

Layonu emphasized that General Hydrocarbons is taking steps to address what it views as an abuse of the court process by First Bank. He urged parties to hold off on enforcing the orders until the legal disputes surrounding the conflicting rulings are resolved.

The statement read, “The said orders of court effectively restrict our client’s access to its funds in your bank to the tune of $225,802,379.69 (two hundred and twenty-five million, eight hundred and two thousand, three hundred and seventy-nine United States dollars, sixty-nine cents), being the alleged outstanding indebtedness arising from the loan facilities/facility agreements between our client and First Bank of Nigeria Limited (“FBN”).

“Given this, we consider it imperative to notify you of the legal defects in the said orders as well as the grave legal implications of acceding to FBN’s attempt to enforce the said orders against our client’s interests in your bank.”

The counsel reminded that “the Federal High Court, per Allagoa, J had in a final judgment delivered on 12th December 2024 in Suit No. FHC/L/CS/1953/2024 – General Hydrocarbons Limited v. First Bank of Nigeria Limited, unequivocally and emphatically restrained FBN from taking any steps whatsoever to enforce any security, receivables, instrument, finance documents or assets of our client pending the hearing and determination of the ongoing arbitration proceeding between our client and FBN.

“We consider it imperative to draw your attention to the fact that the restraining order of the Federal High Court against FBN in Suit No. FHC/L/CS/1953/2024 emanated from a final judgment of a court of competent jurisdiction which has not been set aside on appeal, and which was delivered prior to the subject interim order of the Federal High Court which FBN seeks to enforce against our client. For the avoidance of any doubt, the order of the Federal High Court, per Allagoa, J is reproduced below:

“An order is granted, restraining the Respondent either by itself, or acting through its servants, agents assigns, privies affiliates howsoever described, including any person claiming under its authority from making any calls or demands, or taking any steps whatsoever to enforce any security receivables, instrument, finance documents or assets of the Applicant which have been charged as security for the facility agreements in respect of the Applicant’s operation of OML 120, including but not limited to the said Letter, and the amended and restatement agreements between the Applicant and the Respondent pending the hearing and determination of the arbitration proceedings between the Applicant and the Respondent brought pursuant to Clause 12 (c) of the Agreement between the Applicant and the Respondent dated 29th May, 2021.”

It added, “It is apparent that the extant orders of the Federal High Court per. Allagoa, J which was made on 12th December 2024, after hearing both parties is at variance with the orders of the Federal High Court per Dipeolu, J which was obtained ex parte by FBN on 30th December 2024.

“The plausible explanation for this is that FBN deliberately omitted to bring the orders of the Court made on 12th December 2024 to the attention of the Court in the subsequent suit coram Dipeolu, J.

“This is a most blatant case of abuse of court process by FBN which has sought to overreach our client by approaching another Judge of the same Court to obtain favourable orders that directly contravene an extant order of the Court which has not been set aside on appeal or otherwise.”

“Please be assured that we are already taking steps to bring FBN’s contemptuous act and abuse of court process to the attention of the Court and to seek stringent legal redress against FBN and its directors for any loss or damage that may be suffered by our client as a result of FBN’s actions,” it added.

KanyiDaily had also reported how an Ogun State High Court ordered Zenith Bank Plc to pay N500,000 as damages for sending spam messages to a woman identified as Omotola Fathiat Quadri.