LThe Supreme Court has nullified a Court of Appeal order that froze the assets of Nestoil Limited and Neconde Energy Limited in a long-running debt dispute involving FBNQuest Merchant Bank and First Trustees.
Gatekeepers News reports that in a judgment delivered on Monday, a five-member panel of the apex court ruled that the Court of Appeal acted without jurisdiction when it granted an ex parte application that led to the freezing of the companies’ assets.
Justice Stephen Adah, who delivered the lead judgment, held that the appellate court lacked the authority to issue the order under the circumstances. The ruling effectively sets aside the asset freeze imposed on the two companies.
The dispute arose from efforts by a consortium of lenders led by FBNQuest Merchant Bank and First Trustees to recover an alleged debt of about $1.1 billion from Nestoil and Neconde.
The lenders had secured court orders that placed the companies under receivership, sparking a series of legal battles over the management and control of their assets.
The Supreme Court also faulted the Court of Appeal for granting a stay of proceedings in a matter already pending before the Federal High Court in Lagos, describing the action as improper. The apex court maintained that the substantive issues in the case should be determined by the lower court.
The judgment marks a significant development in the protracted legal tussle involving the oil and gas firms, their promoters, and creditor banks over debt recovery claims and the legality of the receivership process. The case will now continue at the Federal High Court for further proceedings.
