Court Adjourns N10 Billion, $5million Suit against Petrocam

Matilda Omonaiye/

The Federal High Court in Lagos has fixed May 23, 2019, for the determination of a debt recovery suit of N10, 062, 643, 928. 72 and $5, 247, 693. 83 filed by Union Bank Plc against an Oil Company, Petrocam Trading Nigeria and two others named as Mr Patrick Ilo and Petrocam Trading Ltd South Africa.

The Court would determine if the suit could be termed as an abuse of court process or not.

In a statement of claim filed before the Court by Union Bank Plc’s lawyer, Chief Ajibola Aribisala SAN, the bank averred that the business structure is such that while Petrocam Trading Nigeria had direct allocation for AGO importation, the company entered into joint venture agreement with interested companies that have PPPRA allocation for importation of Petrol. This is to assist companies that have allocations but lacks the needed funding to do their business thereby sharing both risk and reward with the company.

Consequently, in pursuance of the banker-customer relationship between September 29, 2014 and April 21, 2015, Union Bank granted the company Import Trade Facilities to finance the importation of Petroleum products which as at January 10, 2018, Petrocam Trading Nigeria Limited and its Managing Director, Mr Patrick Ilo, are indebted to Union Bank to the tune of N10, 062, 643, 928. 82 and US$5, 247, 963. 82 with interests still running at the prevailing rate.

The bank further averred that although the sum of N200million was remitted into the opening account with the bank, no explanation was made by the company on the failure to remit the whole sovereign debt notes FX and interest differentials or subsidy payments in the sum of N2, 162, 248, 931. 01 received from the Federal Government on the said letter of credit financed by the bank before the account was abandoned by the company.

The bank’s claims against the defendants are as follows N10, 062, 643, 928. 72 and $5,247,693.82 with accrued interest and N20million as the cost of instituting this action.

However, the defendants in their application filed and argued before the court by their counsel Mr Gboyega Oyewole SAN, urged the court to dismiss or strike out the suit on the ground that they have subsisting legal action against the bank on the same subject matter before the Lagos State High Court, therefore the present suit amounts to abuse of court process.

In a counter argument and submission canvassed by Chief Ajibola Aribisala, the bank contended that the suit does not constitute an abuse of court process to the one at the Lagos high court filed by the defendants as parties because reliefs and issues are not the same.

He argued that the cause of action is equally not the same.

According to him, while the suit filed at the Lagos State High Court was predicated on acts of gross negligence allegedly committed by the bank, the suit filed by the bank before the Federal High Court is a debt recovery of suit, therefore the institution of the suit at the Lagos State High Court by the defendants does not preclude the bank from bringing this action before this court. He pleaded that the Court, in the interest of justice, should dismiss the defendants’ application with a heavy cost.

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