The High Court of the Federal Capital Territory (FCT) has restrained the Oyo State government, its contractor, Craneburg Construction Co. Ltd, and two others, from executing a road construction contract awarded to ENL Consortium Ltd.
The interim order will subsist pending the hearing and determination of a motion on notice and the substantive suit.
Justice Enobie Obanor gave the ruling after listening to the plaintiff’s counsel, B. J. Akomolafe, on a motion ex-parte numbered FCT/HC/M/8903.
It was pursuant to the suit numbered FCT /HC/CV/2133/ 2022, in a suit by ENL Consortium Ltd against Craneburg Construction Co. Ltd, Fadi Khalil, Mohammed Abdul, the Oyo government and the state Attorney-General.
Akomolafe told the court that ENL Consortium was awarded a build, operate and transfer (BOT) contract for the Ibadan Outer Ring Road, measuring 32 kilometres. He said the entire project was to be contractor-financed within a period provided in the contract.
It was designed to allow the contractor to recoup his expenditure and make an appropriate profit.
Akomolafe said: “In the course of executing the contract with finances sourced by the contractor, there was a change of administration from Governor Abiola Ajimobi of the All Progressives Congress (APC), whose government awarded the contract, to Governor Seyi Makinde of the Peoples Democratic Party (PDP).
“The latter did not hide the fact that his administration did not want the plaintiff to conclude and benefit from the contract. Consequently, by some contrivances set out in the statement of claim, the Oyo State government purported to revoke the contract and re-award same to Craneburg Construction Co. Ltd, an Abuja-based company.
“This is despite the fact that the contract was still subsisting and not resolved through the arbitration clause in the contract, which the state government is yet to take advantage of.”
The plaintiff, therefore, sought orders of an interim and interlocutory injunction against the defendants.
It sought an order of interim injunction restraining the defendants/respondents and their agents ‘from further interference, disturbance, trespassing or any other action or conduct in like manner with the business of the claimant in respect of a subsisting self-financing concessionaire of the 32-kilometer East End Wing of the 107-kilometre proposed Ibadan Ring Road (the Ibadan Circular Road) under the terms of the Concession Agreement dated 25th August, 2017 with Oyo State Government pending the hearing and determination of the Motion on Notice in this suit’.
The plaintiff also prayed to serve the contractor with the processes at 1, Block 2, River Patoka Close, off Nile Street, Maitama Abuja through any adult staff at the reception, and the state at its liaison office situate at Plot 77, Oyo House, 78, Ralph Shodeinde Street, Central Business District, Abuja.
Ruling, Justice Obanor said: “It is hereby granted as follows: the court having carefully gone through the reliefs sought in Motion No. M/8903/ 2022 and having also gone through the affidavit evidence and seven exhibits annexed thereto as well as the written submission of counsel, the court is satisfied that the application is meritorious and it is hereby granted and order made as prayed pending the hearing and determination of the motion on notice.”
Justice Obanor adjourned till Friday for a hearing of the motion on notice.