Justice Muslim Hassan of the Lagos Federal High Court has struck out a suit by Shebah Exploration and Production Company Limited and its chairman Dr. Ambrosie Orjiako.
They prayed the court to set aside the enforcement of a judgment delivered against them by the High Court of Justice, Queen’s Bench Division, England.
Shebah Exploration and Production Company had urged Justice Hassan to set aside the leave granted African Export-Import Bank, Diamond Bank (now Access Bank) and Skye Bank Plc (now Polaris Bank) to register the judgment in Nigeria.
But, AOS Orwell Ltd, to whom Shebah Exploration and Production Company is allegedly indebted, through its counsel Mr. ‘Kunle Ogunba (SAN) prayed Justice Hassan to dismiss the petition.
Ogunba, a leading insolvency expert, argued that Shebah Exploration and Production did not comply with the relevant provisions of the Companies and Allied Matters Act.
The SAN contended that his client had commenced winding-up proceedings against Shebah Exploration and Production in a suit numbered FHC/L/CP/1227/2016 pending before Justice Saliu Saidu of the same court division.
According to Ogunba, the law is that once a winding-up order is made or a provisional liquidator is appointed, the company must seek the court’s leave to commence or defend actions instituted against it.
He submitted that the conditions precedent to invoking the court’s jurisdiction was not complied with.
Ogunba said Shebah Exploration and Production failed to secure Justice Saidu’s leave prior to instituting the action.
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Not doing so, Ogunba argued, robbed Justice Hassan of jurisdiction to hear the suit.
But, Shebah Exploration and Production Company’s counsel argued that the suit had nothing to do with the winding-up petition or the transaction that led to it.
It described AOS Orwell as an interloper for not being a party to the action before Justice Hassan.
In his verdict, Justice Hassan struck out the suit, citing Section 417 of the Companies and Allied Matters Act Cap C.20 LFN 2004.
The section reads: If a winding-up order is made or a provisional liquidator is appointed, no action or proceeding shall be proceeded with or commenced against the company except by leave of the court given on such terms as the court may impose.
The judge ruled that the petitioner failed to secure the original court’s leave to institute the petition.
He held that the condition precedent to invoking his jurisdiction had not been complied with.
Consequently, Justice Hassan struck out the suit for lack of jurisdiction.
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