Central Bank Of Nigeria V. Interstella Communications Limited & Ors (2017)

LAWGLOBAL HUB Lead Judgment Report

CLARA BATA OGUNBIYI, J.S.C.

This is an appeal against the decision of the Court of Appeal sitting at Owerri contained in the judgment of the Court delivered on 9th May , 2014 affirming the decision of the Federal High Court Umuahia Judicial Division delivered on 13th June, 2012. The trial High Court dismissed the Appellant’s preliminary objection to the jurisdiction of the Court to entertain the Garnishee Proceedings instituted by the 1st and 2nd Respondents to enforce the judgment entered on 17th June, 2009 against 3rd and 4th Respondents and made the Garnishee order absolute.

The judgment creditors/1st and 2nd Respondents instituted a Garnishee proceeding at the trial Court on 12/10/2011 against the Appellant herein, as the Garnishee and the 3rd and 4th Respondents as judgment Debtors/Guarantors in the Garnishee Order Nisi FHC.UM/M/85/2011 for the following reliefs:

“1. AN ORDER Garnishee Nisi against the Garnishee i.e. CENTRAL BANK OF NIGERIA that sums of:

(i) the sum of $117,400,000.00 being the principal and interest on the judgment debt as of date now outstanding and

1

unpaid, and

(ii) $57,895.90 (fifty seven thousand eight hundred and ninety five US dollar and ninety cents) per day, from the date of this application being 18 percent interest per annum on the outstanding sum of $117,400,000.00

(iii) OR IN THE ALTERNATIVE the naira equivalent of the above sums (i and ii above) based on the exchange rate of the naira to the US dollar on the date of settlement Be attached and deducted by the Garnishee from the monies accruing to the 1st Judgment Debtor’s/Guarantor’s account with the Garnishee and paid to the Judgment Creditors/Applicant Garnishors in satisfaction of the Judgment debt arising from the Judgment of the Honourable Court delivered on 17th June, 2009 being a novation and Consent Judgment varying the original judgment of this Honourable Court delivered on 6th November, 2007.

2. AN ORDER granting leave to the Applicant Garnishors to serve the Garnishee the Order Nisi and any other processes of this Honourable Court at the Garnishee’s headquarters at the Central Bank of Nigeria, Abubakar Tafawa Balewa Way, Central Business District, Garki, Abuja in the Federal Capital Territory of Nigeria.”

2

The Background and facts of this case are:-

The 1st and 2nd Respondents sometimes in 2004 sued Nigerian Telecommunications Ltd. (NITEL) at the Federal High Court, Umuahia in Suit No. FH1/UM/CS/95/04 for breach of contract and damages there from and judgment was delivered in favour of the 1st and 2nd Respondents on 6/11/2001 by Hon. Justice H. T. Soba.

As of October 2008, the judgment Debt stood at over N23 Billion and $48 Million. Consequently, an Inter-ministerial committee was set up in intervention, by the Federal Government of Nigeria for the amicable settlement of the judgment debt with the 1st and 2nd Respondents. Resultantly, the said Respondents accepted the sum of N12 Billion (Twelve Billion Naira) in full and final settlement of the judgment debts of N23 Billion (Twenty three Billion Naira). This was vide a Report of settlement dated 11/6/2009 and subject to the 1st and 2nd Respondents’ terms of acceptance dated 20/3/2009. Eventually and with the consent of the 3rd and 4th Respondents, the said offer of $12 Billion was entered as consent judgment of the Federal High Court, Umuahia Judicial Division, on 17/6/2009.

3