Justice Ambrose Lewis-Allagoa of the Federal High Court sitting in Lagos has set aside the transfer of Arik Air Limited’s assets by the Assets Management Company of Nigeria (AMCON) to NG Eagle Limited to run its operations.
The Court also ordered the Receiver Manager, and AMCON to allow the Directors and shareholders of Arik Air Limited unfettered access to their offices, premises of the Plaintiff, facilities and staff required for the discharge of their functions.
Besides, Justice Allagoa Ordered the 1st and 2nd Defendants to render accounts and/or deliver returns to the Corporate Affairs Commission covering the entire period of the receivership over Arik Air Limited within 14 days of the making of this Order.
AMCON appointed receiver/manager, Kamilu Alaba Omokide, had handed the management of Arik Air to NG Eagle Limited and Super Barvo Limited.
Dissatisfied, the management of Arik Air approached the court in suit number FHC/L/CS/1175/2021 praying the court to set aside the decision.
The applicants in the suit are, Johnson Arumemi Ikhide and Mary Arumemi Ikhide, while the Defendants are, Kamilu Alaba Omokide (Receiver/Manager of Arik Air Limited), Asset Management Corporation of Nigeria, NG Eagle Limited, and the Nigerian Civil Aviation Authority.
The Applicants prayed the court for a declaration that the duty imposed on the Receiver Manager (1st defendant) by Section 553 of the Companies and Allied Matters Act 2020 to act in the best interest of Arik Air Limited as a whole includes the duty to act in the best interest of the Plaintiffs as members of Airk air Limited.
They also sought for “a declaration that the transfer of Arik Air Limited assets to the 3rd Defendant (NG Eagle Limited) and/or 5th Defendant (Super Bravo Limited) by the 1st Defendant (Omokide) was done In bad faith and is a violation of the 1st Defendant’s (Arumemi) fiduciary duty to Arik air Limited as a whole”.
After listening to the Applicants Justice Allagoa in his judgement held, ”That a Declaration is made that the duty imposed on the 1st Defendant by Section 553 of the Companies and Allied Matters Act 2020 to act in the best interest of Arik Air Limited as a whole includes the duty to act in the best interest of the Plaintiffs as members of Airk air Limited.
“That a Declaration is made that the transfer of Arik Air Limited assets to the 3rd Defendant and/or 5th Defendant by the 1st Defendant was done in bad faith and is a violation of the 1 Defendant’s fiduciary duty to Arik air Limited s a whole as imposed by Section 553 of the Companies and Allied Matters Act 2020.
“That a Declaration is made that by transferring or attempting to transfer Arik Air Limited assets to the 3rd
Defendant and/or 5th Defendant, the 1st Defendant did not act in the best interest of Arik Air Limited as a whole GOA and thereby failed in his duty to act in accordance with Section 553 of the Companies and Allied Matters Act
- “That a Declaration is made that the 1st Defendant is liable for any losses suffered by Arik Air Limited and/or its members as a result of the transfer of Arik Air Limited’s assets to the 3rd Defendant and/or 5th Defendant.
“That a Declaration is made that in spite of the appointment of th 1s Defendant as Receiver/Manager of Arik Air Limited, the organs of Arik Air Limited including directors and shareholders subsist.
“That a Declaration is made that the directors nd shareholders of the Arik Air Limited, including the Plaintiffs still have rights and powers regarding Arik Air Limited save as regards to the day to day management of the Plaintiff.
That an Order is granted setting aside the transfer of Arik Air Limited’s assets by the 1st Defendant or 2nd Defendant to the 3° Defendant and/or 5 Defendant.
That an Order is granted directing the 1st and 2nd Defendants to allow the Directors and shareholders of Arik Air Limited unfettered access to their offices, premises of the Plaintiff, facilities and staff required for the discharge of their functions.
That an Order is granted directing the 1st and 2nd Defendants to render accounts and/or deliver returns to the Corporate Affairs Commission covering the entire period of the receivership over Arik Air Limited within 14 days of the making of this Order.
“That the 4th Respondent is not liable to the Plaintiff in any material particular therefore the suit is incompetent in relation to the 4! Respondent.”
