The Court of Appeal, sitting in Abuja, has overturned the ruling of the Federal High Court in Port Harcourt. The appeal, filed by First Bank of Nigeria against General Hydrocarbons Limited (GHL), has been granted.
As part of the ruling, the court has authorized the sale of the crude oil on board the FPSO Tamaru Tokoni.
The proceeds from this sale are to be deposited into an interest-bearing escrow account managed by the chief registrar of the court.
This arrangement will remain in place pending further hearings and the final determination of the case in the trial court or in arbitration.
Justice Polycarp Kwahar, who read the lead judgment, also appointed the chief registrar of the Court of Appeal to take charge and possession of the crude oil cargo and to protect the same against dissipation or unauthorised disposition by any party, pending the hearing and the determination of the case of the trial court of arbitration.
Earlier this year, Justice Emmanuel Obile of the Federal High Court, Port Harcourt, had dismissed First Bank’s suit, which alleged fraudulent subversion of proceeds of sale from the oil cargo, which it said GHL had pleaded as security for a deal.
The judge upheld the preliminary objection filed by GHL and held that the dispute was not a maritime claim but a debt recovery.
GHL Denies Owing $225.8m
First Bank alleged that GHL owed it $225.8 million in debt; however, GHL denied this claim. GHL also accused First Bank of misusing an ex parte freezing order by selectively releasing some of the crude from the FPSO to Conoil and the NNPC. Dissatisfied with the ruling of the Federal High Court, First Bank subsequently filed an appeal.
