In order restraining Shell Petroleum Development Company (SPDC) from interfering with the Rivers State Government’s title, right and interest over fixed landed assets in Kidney Island Base, Port Harcourt, and interests in Lands comprised in OML 11 was yesterday given by the High Court sitting in Port Harcourt, Rivers State.
Justice Adolphus Enebeli, who issued the order, ruled that the state government’s acquisition of the island and OML 11, through public auction ordered by the court in pursuant to a judgement on 14 August, 2019, remained absolute, irreversible and indivisible.
The Justice Enebeli gave the order while delivering judgment in a suit filed by the SPDC, challenging the decision of the state government to seal off the Kidney Island, which was once used as the company’s operational base.
Defendants in the suit are Rivers State Government; its Attorney-General/Commissioner for Justice; Deputy Sheriff and Registrar of the High Court of Rivers State.
Quoting Section 47 of the Sheriffs and Civil Process Act, the judge averred that at any time within 21 days from the date of the sale of any immovable property, application may be made to the court to set aside the sale on the ground of any material irregularity in the conduct of the sale.
He ruled that if the SPDC had noticed irregularities in the court judgment authorising the sale of its asserts, it was statutorily bound to challenge it within 21 days of the sale, but that it did not do.
The judge insisted that the law is explicit that once assets are sold through public auction ordered by the court pursuant to a judgment and the sale is not challenged within 21 days, the buyer’s claim to the property is absolute, irreversible and indivisible.
Justice Enebeli cited Section 48 of the Sheriffs and Civil Process Act, which states that if no such application as is mentioned in section 47 of the Act is made, the sale shall be deemed absolute.
He ruled that the Rivers Government having purchased the assets and duly issued certificate of title without any contestation from the oil firm within the stipulated 21 days, has every legal right to protect its property.
The Justice said though the SPDC claimed it filed an appeal at the appellate court, the earlier court verdict authorising the sale of the company’s assets, which is yet to be set aside by any competent court, still subsist.
He observed that the suit brought by the company is an indirect attempt to catch a horse that had bolted off from its stable 512 days earlier.
Enebeli noted that SPDC in the suit brought before the court did not also seek an order setting aside the auction of the assets in question.
The judge issued an order restraining the SPDC from continuing to interfere with the Rivers government title, right and interest over the fixed landed assets comprised in Kidney Island Base, Port Harcourt and interests in Lands comprised in OML 11.
Speaking outside the court, a government lawyer, Chukwuemeka Eke, expressed delight over the judgment.
He said: “The property was actually sold to the Rivers State Government and Shell came back again and started to interfere with the right now acquired by the Rivers State Government.
“Today, we just finished from court and the court has confirmed that Shell not having challenged the sale of the property to the Rivers State Government cannot at this time seek to set it aside.
“And so the court dismissed the entire claim of Shell and further granted an injunction restraining Shell from interfering with the right of Rivers State Government to the property at Kidney Island.
“The effect of today’s judgement is that the property at Kidney Island still belongs to the Rivers State Government and Shell cannot interfere or remain there. The Rivers State Government is entitled to full possession and use of that property.”
Eke added: “If there were irregularities at all in the sale, the law provides that the SPDC should have raised that within 21 days of that sale. However, Shell did not do so.
“This is 512 days after the sale. It is too late in the day. The law is that once you do not challenge the sale within 21 days, the sale becomes absolute and what more, the court has before now issued Rivers State Government with certificate of title to the place.
“The effect of that is that it is irreversible. You cannot challenge the right of Rivers State Government at this time. It is too late. That is the position of the law.”
In November 2020, the Supreme Court reaffirmed Rivers State Government acquisition of SPDC interest in OML 11 and Kidney Island, when it dismissed the SPDC suit which sought to set aside the judgment made against it in 2019 in favour of Ejama-Ebubu community.
Also in 2017, the people of Ejama-Ebubu secured a judgment against the SPDC and its subsidiaries in the sum of N57.7bn as damages for oil spills from the Trans-Niger Pipeline that damaged their environment.
Following Shell’s refusal to pay the amount, the Ejama-Ebubu community sought the leave of the court to attach the immovable properties of SPDC, a relief that the court granted.
A court order was issued to sell some of the properties of SPDC, including Kidney Island and the acquisition of Shell interest in OML 11.
A public auction was held by the officers of the Rivers State Judiciary and the State Government bade successfully for the purchase of Kidney Island and Shell interest in OML 11.