The Federal High Court in Lagos has adjourned till May 23, a N10,062,643,928.72 and $5,247,693,.83 debt recovery suit between Union bank Plc and an oil firm, Petrocam Trading Nigeria Ltd.
Union Bank is the Plaintiff in the suit marked FHC/L/CS/383/2018, while Petrocam Trading Nig Ltd, its Managing Director /alter ego Mr Patrick Ilo and Petrocam Trading (PTY) Ltd South Africa are first to third defendants.
Justice Iniekenimi Nicholas Oweibo fixed the date last Thursday to rule on whether the suit is an abuse of court process.
The bank, in its statement of claim filed by its lawyer, Chief Ajibola Aribisala SAN, averred that Petrocam Trading Nigeria had direct allocation for Automated Gas Oil (AGO) importation, and it entered joint venture agreements with interested companies that have Petroleum Products Pricing Regulatory Agency (PPPRA) allocation for petrol importation.
This was to assist companies with allocations but lacking funding to complete the business. Both firms would then share both risks and rewards.
Union Bank averred that in pursuance of a banker- customer relationship between September 29, 2014 and April 21, 2015, it granted Petrocam Nigeria Import Trade Facilities to finance importation of Petroleum products.
It added that as at January 10, 2018 Petrocam Nigeria and Ilo had racked up debts to the bank as follows: 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 entire 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.
However, the defendants in their application argued by their counsel Mr Gboyega Oyewole SAN, urged the court to dismiss or strike out the suit on the ground that, they had a subsisting legal action against Union Bank on the same subject matter at a Lagos State High court.
“The suit amounts to abuse of court process,” Oyewole said.
But in a counter argument canvassed by Aribisala, the bank contended that the parties, reliefs and issues of the Federal High Court suit are not the same as the one at the Lagos High Court. The cause of action was also different.
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