Global Sterling Products Ltd’s business has ground to a halt, its 50 members of staff have been unpaid since March, while its customers can’t gain access to their goods since the Asset Management Corporation (AMCON) sealed the firm’s Lagos premises, despite a court order directing it to allow resumption of business activities pending the determination of a court case. ROBERT EGBE reviews the parties’ claims and counter claims in Suit No. FHC/L/CS/521/2019
March 6, 2020 began like any other business day for Harish Puri. The Indian national left his home as usual for Global Sterling Products Ltd at No. 98, Kudirat Abiola Way, Oregun, Lagos.
As Global Sterling’s Managing Director, he had been running the plant and machinery, beverages and foods company since he establihed the business 38 years ago.
But this day was different.
At about 11am, officials of the Assets Management Corporation of Nigeria (AMCON) Receiver and court bailiffs, protected by armed police and others numbering 35, entered his company’s premises.
Waving a court order, they ordered everyone out: they had come to seal the place.
“I wanted to know what our crime was,” Puri said, ”why we had to vacate, because we had no prior notice.
“But they said they had a court order. I said they should have notified us, so that we would know this was a time bomb for us, that we were going to be ejected. They showed me a paper from AMCON and said that this is AMCON’s Receiver, there was a court order and we had to sign it and vacate the premises immediately.
“My staff of about 50 persons, started running helter-skelter in a panic because there were armed police everywhere. They mounted so much pressure on us that we didn’t know what to do. Most of our phones, office phones, laptops, computers with which we transacted our regular businesses, we left everything inside.
“They didn’t allow us to take anything. We wanted to, like some of our routine things like phones, so that if there is an enquiry we could tell our customers.
“Since then our business has been dead completely, because our customers cannot reach us. Our systems, master computer where we access our official emails and all that, they’re all inside the office.
“We wanted to take our cars, they said we couldn’t. So we started pleading that we came to work with our cars, let us leave with our cars. Finally they agreed and let us take only two cars. We came out and they locked the compound. The next day, we contacted our lawyer, Mr. Ade Adedeji SAN, and he swung into action.”
AMCON’s case
Global Sterling Products Ltd sits on three plots of land measuring approximately 2170.897 square metres within a huge expanse of land known as 98, Kudirat Abiola way Oregun in Ikeja Local Government Area.
The expanse of land is allotted to different parties including Puri’s firm.
On March 29, 2019, AMCON filed Suit No. FHC/L/CS/521/2019 against a company called Cortex Limited and 26 other defendants allegedly owing the Federal Government N8.4 billion.
The others are: a law firm, Succedant Solicitors, Evang. (Mrs.) Adebimsola Olufunmilade Odunaiya, Mr. Olufemi Kehinde Odunaiya, Dr. (Mrs) Olushola, Taiwo Odunaiya Mrs Ololade Ososami, and Dr. (Mrs.) Tolulope Solola, Mr. Akin Thomas, Mr. Wole Odubanjo, ASCO Quarry Nigeria Ltd, Basorun Rotimi Obeisun, Chief (Mrs.) Bosede Obeisun, Mr. Oluwamayowa Ayokunle Obeisun, Murufudeen Olabode Abu, Kehinde Afeez Abu, Abdullahi Kamar, Juliet Kesiena David, Adeyemi Olufunmilade Adekoya, Olufunmilade Moses Adeyemi, Sani Fatima Dabai, and Michael Ayodele Ewuosho.
Global Sterling Products Ltd was not named as a party or defendant in that suit.
In addition to the suit, AMCON also appointed a Receiver/Manager, Mr. Lanre Olaoluwa, to run Cortex Ltd’s operations.
On March 7, AMCON enforcement units and sheriffs of the Federal High Court, Lagos executed an April 11, 2019 order of Justice Rilwan Aikawa against 12 of the defendants.
They seized their multi-billion naira properties in simultaneous operations at Lekki, Apapa, Ikeja, Somolu and Kosofe areas of Lagos.
The affected properties were: Elegant Court on Mobil Road Lekki. It houses 12 three-storey blocks of 72 luxury apartments, a tennis court and other facilities on 1.802 hectares.
A three-storey shopping complex on Mobil Road, Lekki, was also sealed.
If Global Sterling Products Ltd was not originally named as a party to the suit, why was its premises sealed up?
AMCON explained why on July 24 before Justice Chukwujekwu Aneke in a counter and further affidavit sworn to by one Ayodele Majekodunmi.
It stated that Cortex obtained a loan from the former Skye Bank now Polaris Bank which was acquired by AMCON as non-performing loan.
AMCON on April 11, 2019 then obtained a court order to attach all the assets that AMCON reasonably believed to be owned by the defendants.
It said there was no evidence that the three plots of land measuring approximately 2170.897 square metres was owned by Global Sterling Products. Consequently, it did not make Global Sterling a party to the suit.
Global Sterling’s case
But Puri disagreed with AMCON’s claim. He said he explained to the officials that he had proof of ownership, but they would not listen.
He said: ”They (AMCON) said the court paper showed that we had taken some kind of loan. I said our name was not there as one of the parties to the suit. They said our (company’s street number) No. 98 was mentioned. I said No. 98 is very big. My neighbour, Balmoral (Events Centre) is also No. 98. They said no, this is No. 98.
“We were afraid because of the police with their guns and so on. They were so wild and violent on us. So, we had no option but to vacate the place.”
Puri’s counsel, Mr. Adedeji, filed a Motion on Notice on March 13, 2020 before Justice Chukwujekwu Aneke seeking to discharge Justice Aikawa’s order of April 11, 2019 which was in AMCON’s favour.
Following that motion, Puri stated his side of the story in a further and better affidavit of June 26, 2020.
He told Justice Aneke that Global Sterling Products Ltd is the victim of a fraud perpetrated by by the 13th and 14th defendants in the suit, Murufudeen Olabode Abu and Kehinde Afeez Abu.
Global Sterling, he said, purchased the land from Asphalt Company Nigeria Ltd, owned by the Abu siblings for N100 million.
Puri said this was after necessary searches had been carried out by two lawyers at the Lagos State Land Registry to ascertain the genuineness of the property. Parties then executed a Deed of Assignment dated October 24, 2008
But the company discovered that the previous owner registered a fake document and got the Lagos State Government to issue and register a private Certificate of Occupancy. On February 27, 2009, the Lands Bureau sealed the premises and cancelled the C of O issued to Asphalt Company of Nigeria.
Global Sterling on March 23, 2009, wrote a letter to the Permanent Secretary of the Lands Bureau, Alausa, Ikeja for the regularisation of the property and “the government decided to re-assign the property to the Applicant (Global Sterling Products Ltd).”
He said he petitioned the Economic and Financial Crimes Commission and Deputy Inspector-General of Police, Abuja, about the alleged fraud suspected to have been perpetrated by the previous title owners.
Puri said he had “since applied for regularisation of title in respect of the unassigned portion of land that reverted back to Lagos State,” and that he was “in the process of regularising his title to the unassigned portion of land at 98, Kudirat Abiola Way, Ikeja, Lagos, which reverted to Lagos State Government.”
Puri told the court further that: “Asco Quarry Nigeria Ltd is not the owner of property known and described as 98, Kudirat Abiola, Oregun Industrial Estate, Ikeja, or any portion of it…
“…That the Bank on its own part failed to carry out a proper authentication of the Certificate of Occupancy from the authorised government agency before disbursing the loan to Asco Quarry Nigeria Limited.
“The 22nd Defendant/Applicant (Global Sterling) should not suffer for the sins, ineptitude and failure to conduct a proper due diligence by Polaris Bank, whose debt was purchased by the Claimant/Respondent in this suit.
“That the 22nd Defendant/Applicant remains a victim of an error/fraud and is suffering huge damages due to perishable goods in the premises (i.e. goods that expires within a particular time frame) and factory equipment that has since remained unserviceable and open to consequential damages and loss.”
He prayed the court to set aside/discharge Justice Aikawa’s order of April 11, 2019, was granted, Global Sterling “will be dead as a going concern.”
The company further undertook to “vacate the property in the unlikely event that in the course of the hearing of the substantive action, the above facts are found to be false.”
AMCON opposed the application.
Court orders AMCON to allow Global Sterling use its premises
Last July 21, Justice Aneke upheld Global Sterling’s application and varied Justice Aikawa’s order.
He ordered AMCON to allow Global Sterling to continue running its business on its premises.
“The receiver is therefore restrained from interfering with 22nd defendants’ (Global Sterling Production Ltd)’s occupation and use of the said premises contained in the said No. 98, Kudirat Abiola way pending the determination of this suit. The suit is hereby adjourned till October 26, 2020 for hearing at 10am,” Justice Aneke held.
Contempt proceedings against AMCON Chairman, Receiver
But AMCON refused to obey the court order. It claimed that it had filed a notice to challenge that order at the Court of Appeal.
On July 23, 2020, Global Sterling Products Ltd initiated contempt proceedings at the Federal High Court in Lagos against AMCON Managing Director Ahmed Kuru and its Receiver-Manager Lanre Olaoluwa.
The firm told the court that the duo were yet to obey the order restraining the receiver from interfering with its occupation of its premises at 98, Kudirat Abiola Way, Oregun, Ikeja, Lagos.
50 workers, customers suffer
Puri told The Nation that AMCON’s refusal to comply with the court order had damaged its business and caused untold hardship to staff and customers.
He said: ”Since then and till now, our staff have not been paid, all our activities have stopped, customers that want to pay us, we cannot take their money, we cannot do any transactions.
“Some customers have paid us already and their goods are inside; we cannot deliver to them. This is the most painful thing to us. Another thing is, spare parts, we sell machines and spare parts. We cannot now help our clients, those who need spare parts, machines have broken down and they need servicing, big companies keep calling us that they need these parts for their machines, machines need spare parts and those parts are with us only, because we sell those machines exclusively.
“So, we are helpless. Our lawyer has tried his best and got a court order in our favour. The judge found that we are not a beneficiary of the loan. Our name isn’t there. So, he gave us a relief that the place should be opened immediately. But the next day, we found that AMCON had gone further to stop the unsealing of the place by approaching the court of appeal.
“So, we are in serious pains now; we don’t know what to do. My workers – 50 of them – I have not been able to pay them, we are unable to do any transaction. We are completely in a dilemma.”
He urged AMCON to obey the order restraining it from interfering with Global Sterling’s occupation and use of the premises.a
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