A Federal High Court sitting in Lagos has cleared the former Managing Director/CEO of Staco Insurance Plc, Dr. Sakiru Oyefeso, of bankruptcy allegations.

Staco Insurance Plc had earlier filed a petition against Oyefeso, praying the court to declare him bankrupt, and that all assets, interests and holdings, either held personally or through third parties and the privies be liquidated.

The insurer alleged that Oyefeso owed the company the sum of; N576million, $2,175,000 and €219,498.

The Insurance firm also prayed for an order divesting Oyefeso of all shares, interests and holdings in all public and private companies as well as perpetual injunction restraining Oyefeso from appointment as a director in any company in Nigeria.

The petition was filed in 2019, alongside an application for issuance of bankruptcy notice, Notice of bankruptcy and an affidavit of truth of statement in the petition.

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Opposing the firm, Oyefeso’s counsel Mr Seni Adio SAN argued that by section 1(1) of the Bankruptcy Act, the company must establish that it has obtained a final judgment or order against Oyefeso  in the matter or any other matter.

Contending that Oyefeso did not commit any act of bankruptcy and that the company had no grounds to declare him bankrupt, Adio prayed the court to dismiss the petition.

Justice I.N Oweigbo, who presided over the judgment delivered on June 29, 2021 said all exhibits submitted by the creditor, that is, Staco Insurance Plc, before the court, lacked substance to declare Oyefeso bankruptcy.

According to the judge, “The picture of the activities of the debtor painted above cannot in my mind constitute a debt.

“I am not satisfied that there exists a debt or that the debtor committed acts of bankruptcy to entitle the creditor to the reliefs sought.

“The petition is accordingly dismissed. I award cost of N50, 000 against the creditor in favour of the debtor.”