The Federal High Court sitting in Port Harcourt, Rivers State, has dismissed a suit First Bank instituted against energy company General Hydrocarbons.
Details seen by this newspaper showed that the court laid aside the entire lawsuit, noting that it lacks the jurisdiction required to hear the case while upholding General Hydrocarbons’ preliminary objection challenging the court’s jurisdiction.
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The energy company is owned by Nduka Obaigbena, the chairman of THISDAY Group.
Justice E.A. Obile dismissed the case for being an abuse of court process and a breach of the orders issued by Justice Ambrose Lewis-Allagoa of Federal High Court Lagos on 12 December 2024 in Suit No FHC/L/CS/1953/2024.
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According to the court, First Bank stated in its counter affidavit opposing the defendants’ notice of preliminary objection that the order issued by Justice Lewis-Allagoa prevented it from enforcing any receivables pertaining to the facility agreement reached by the two parties.
The court stated that the bank’s attempt to distinguish the instant suit from Suit No. FHC/L/CS/1953/2024 could not remain valid, given that the subsequent agreement entered into by both parties was in accordance with the memorandum of understanding between them, which First Bank breached many times over.
By the instant suit, the court said, First Bank approached the court to do what Justice Lewis-Allagoa restrained it from doing, making the lender’s action an abuse of court process.
The court equally upheld General Hydrocarbons’ contention that the ex-parte orders of 9 January 2025 had lapsed by the operation of law and dismissed them on that ground.
The orders comprised an order to arrest and/or attach or lien the entire oil cargo on board the floating production storage and offloading (FPSO) vessel Tamara Tokoni and an order requiring the officers of the Nigerian Navy, NUPRC, NIMASA, and the harbour master of the Nigerian Ports Authority to provide necessary assistance to the admiralty marshal of the court in enforcing the order of arrest.
General Hydrocarbons said in its statement Tuesday night that the court’s decision now clears the path for proceedings to be held at the Lagos Court of Arbitration, where the energy company is seeking hundreds of millions of dollars in damages against First Bank.
Background
First Bank and FBN Quest Trustees approached Federal High Court Lagos on 27 December 2024 with an ex-parte application to seek an order of Mareva injunction in respect of a total claim of $225.8 million, which is alleged outstanding indebtedness on General Hydrocarbons’ account with First Bank as of 30 September 2024.
The court had granted the order restraining all commercial banks in Nigeria from releasing or dealing in all monies and assets up to $225.8 million due to Mr Obaigbena from any account maintained by him.
The court also blocked all commercial banks from releasing or dealing in all monies and assets up to the said amount belonging to Efe Damilola Obaigbena, Olabisi Eka Obaigbena and General Hydrocarbons Limited in which all three are directors and shareholders.
Another order restraining the banks from dealing in or releasing such monies and assets due to the company, its agents, privies, subsidiaries and sister companies with the banks up to the same sum was issued.
In reaction, General Hydrocarbons and some of the defendants requested the court to cancel the order, asserting that the court was misled in granting it in the first place.
The energy firm claimed First Bank and FBN Quest Limited secured the order through fraudulent misrepresentation and concealment of material facts.
In January, the Lagos court reversed the Mareva injunction order, ruling that it contravened an existing order from a court of concurrent jurisdiction.
General Hydrocarbons later said its directors, who are among the defendants in the case, had initiated legal proceedings against First Bank, demanding $1 billion each in damages for defamation and the wrongful freezing of their accounts.
It also disclosed that it would launch a case in the Legal Practitioners Privileges Committee against First Bank lawyers Babajide Koku (SAN) and Victor Ogude (SAN) for “unprofessional conduct.”
In February, First Bank issued a statement saying it had appealed against the discharge of the Mareva order against General Hydrocarbons, adding that it had also applied for an injunction and/or suspension of the order pending the appeal’s determination.
Appeal
Meanwhile, First Bank has filed an appeal against the decision of Federal High Court Port Harcourt dismissing the suit it initiated against the energy firm.
The lender observed in a statement Tuesday night that the court held that the matter is not a maritime claim but rather a debt recovery case.
It expressed its dismay at the court’s declaration that the arrest order against the cargo on the FPSO expired by effluxion of time within 14 days of its issuance, considering that it was ex-parte in nature.
Given its dissatisfaction with the ruling of the court, the bank has appealed against the decision. Likewise, First Bank said it filed an appeal against General Hydrocarbons, pending the determination of the appeal.
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It insisted that the cargoes of crude oil on the FPSO Tamara Tokoni remain arrested.
“While First Bank has great respect for the courts, it strongly disagrees with the ruling, which, in our view, constitutes a miscarriage of justice,” the statement said.
“First Bank remains committed to protecting and securing the interest of its members and will relentlessly pursue justice against mischievous debtors seeking to use the machinery of the law to perpetuate mischief and evade their responsibility to offset outstanding obligations,” it added.
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