Justice Akintoyo Aluko of the Federal high court sitting in Lagos has granted an order directing Assets Management Corporation of Nigeria, AMCON to take over the assets of a firm, SAMOL Limited.
The asset seizure was ordered based on the firm’s unpaid debt of N843.4 million.
The order of the court was sequel to an application in suit number FHC/L/AMC/13/2022 filed before the court by the law firm of Trevis and Ansel Solicitors.
In the Enrolment Order dated June 8,2022, Justice Aluko granted the prayers sought by AMCON to take possible
of the following properties, property at
9/11, Oleleh Street, Ejigbo, Lagos with Certificate of Occupancy No 33 Page 33 in volume 1994C
The court also made an order of interim injunction restraining the 1st and 2nd Defendants from dealing with or alienating or parting with or transferring their title howsoever (whether by assignment, lease, mortgage or other third party interest) any of the properties listed in relief 1 pending the hearing and determination of the Applicant substantive debt recovery suit against the defendants.
Besides the court following orders, “An order freezing all the Bank account to which the 1st and 2nd Defendants are signatory either alone or with any other person in other banks and financial institutions pending the hearing and determination of the Applicant substantive debt recovery suit against the defendants.
“An order interim order restraining the 1st Defendant company, SAMOL Ltd from transfering, dealing with, sell, grant as gifts or in any other manner do anything or take any step(s) that will affect affect their shares by way of pledge, transfer, sale or any other action prejudicial to the interest of the Applicant.
The court also directed the Security and Exchange Commission and the Nigeria Stock Exchange to render necessary assistance to the Applicant to enable the Applicant take interim possession and exercise right of ownership on the shares belonging to the Defendants pending the determine of the recovery suit.
The court also granted an order directing the bailiffs of the court and the officers of the Nigeria Police and officials of the Applicant to enter into the properties for the purpose of carrying out and executing the orders of the court.
The court also directed the Inspector General of Police, Assistant Inspector General of Police in charge of all the zones where the properties of the 1st and 2nd Defendants are located to deplore policemen to secure and assist the Applicant in taking possession of the properties pending the hearing and determination of the substantive suit against the Defendants.
In a 30-paragraph affidavit in support of the Motion Exparte deposed to by Aminu Muhammed Idris, credit officer in the office of the Applicant stated that the first Defendant by a letter dated 30th October, 2000 applied for an overdraft facility of N30 million from the defunct Oceanic Bank of Nigeria Plc which would be utilised strictly to fund purchase of cement from Dangote Industries limited.
He stated that part of the conditions was that the 2nd defendant was to be the personal guarantee of the debtor as security for the loan and that the said loan was to be liquidated in one year by bullet payment.
He added that upon a favourable consideration of the application of the 1st Defendant, Oceanic Bank of Nigeria granted the 1st Defendant’s request.
He stated that by the terms and conditions of the offer of the facility, it was granted for a period of 1 (One) year, which was to be repaid by the Cash flow generated from the Company’s Operations at interest rate of 22 percent per annum.
According to him, the mode of operation will be that, at the request of SAMOL Ltd, the account is debited for the value of cement required and Dangote Cement’s Account credited. Thereafter, Dangote Cement issues an Authority to Collect (ATC) to the Bank; these ATC’s are released to the Debtor’s company on the funding of their account with the Bank.
He stated that by the terms and conditions of the Offer, the security and/or collateral for the grant of the facility are the ATC’S, Dangote Loading Warrants which are issued to the Bank.
He stated that the debtor company by a letter dated 16th February, 2001 further applied for an increase in their overdraft facility to N150,000,000.00 (One Hundred and Fifty Million Naira) in order to increase their purchase of cement from Dangote Industries and enjoy discounted prices, which was granted.
He stated that by the terms and conditions of the Offer, the security and/or collateral for the grant of the facility are the ATC’S, Dangote Loading Warrants which are issued to the Bank and an execution of personal guarantee forms by the 2nd Defendant.
The deponent further stated that the debtor company by a letter dated 17th October, 2201 further applied for an increase in their overdraft facility to N400,000,000.00 (Four Hundred Million Naira) in order to increase their purchase of cement from Dangote Industries and enjoy discounted prices.
He stated that upon a favourable consideration of the application of the 1st Defendant, Oceanic Bank of Nigeria PLC granted the 1st Defendant’s request to increase their overdraft facility.
“That by terms and conditions of the offer of the facility, it was granted for a period of 1 (One) year, which was to be repaid by the Cash flow generated from the Company’s Operations and with interest rate of 24 percent per annum.
“That by the terms and conditions of the Offer, the security and/or collateral for the grant of the facility are the ATC’S, Dangote Loading Warrants which are issued to the Bank and an execution of personal guarantee forms by the 2nd Defendant.
“That the Debtor Company on 30th October, 2002 and the 29th of June, 2004 did apply for an increase in their overdraft in the sum of N200,000,000.00 (Two Hundred Million Naira Only) on the above mentioned dates in order to increase their purchase of cement from Dangote Industries and enjoy discounted prices and was approved by the bank.
He stated that several facilities given to the 1st Defendant, repayment of the loan became due but were unpaid and this remained the position till the filing of this suit.
But, in their Notice of Preliminary objection, the defendants through their lawyer, S A Oshodi stated that the genesis of the Suit, stems from a disputed debt allegedly owed by the Defendants to the defunct Oceanic Bank Plc now Eco bank Plc, which is the subject of litigation currently pending before Hon. Justice Abike-Fadipe of the High Court of Lagos State in Suit No: LD/1421/09 and Appeal No. CA/LAG/CV/733/2020 .
He stated that by virtue of Suit No: LD/1421/09, the defendants/applicants challenged their purported indebtedness to the said Eco Bank Plc.
He submitted that the aforementioned debt is secured by collateral duly accepted and agreed by the parties to Suit No: LD/1421/09, therefore the order of this Court of the 8th day of June, 2022 is overreaching as the Honourable Court erroneously and unilaterally extended the collateral to the properties and accounts attached by its orders.
He added “That the pendency of Suit No: LD/1421/09 before a Court of co-ordinate jurisdiction and the appellate court ousts the jurisdiction of this Court to grant injunctive reliefs.
“That the respondent concealed and misrepresented facts in its affidavit in support of its application as the applicant was well aware of the pendency of Suit No: LD/1421/09. | ”. 6,
“That unless and until judgment is delivered in favour of the defendants in Suit be No: LB/1421/09 this Honourable Court lacks jurisdiction over the assets of the . defendants/applicants.”
