Nigeria Deposit Insurance Corporation (Provisional Liquidator Of Fortune International Bank In Liquidation) v. Cowrie Business Solutions Limited & Ors (2025)

LAWGLOBAL HUB Lead Judgment Report – SUPREME COURT

JUMMAI HANNATU SANKEY, JSC (Delivering the leading ruling)

This ruling is in respect of an application filed by the 1st respondent/applicant herein, to wit: Nigeria Deposit Insurance Corporation (Provisional Liquidator of Fortune International Bank in Liquidation).

She is also a respondent in the substantive appeal filed in this court by the appellant, Cowrie Business Solutions Ltd.

The appeal is against the judgment of the Court of Appeal, Lagos Judicial Division delivered on 24-06-2024 wherein the court below granted the applicant’s notice of discontinuance of her pending appeal against the appellant who was a respondent therein alongside Union Bank Plc.

The applicant now seeks the following reliefs in this court:

1) “An order dismissing or striking out the appeal herein – suit No. SC/CV/552/2024 – Cowrie Business Solutions Ltd v. Nigerian Deposit Insurance Corporation & Anor for abuse of process of court;

2) Alternatively, an order striking out the appeal for lack of diligent prosecution for failure to file the appellant’s brief within the stipulated time.

3) Further in the alternative, an order granting accelerated hearing of the appeal.”

For a better understanding of the issues giving rise to the application, it may be pertinent to take a step back and look into the initial suit commenced by the applicant NDIC as plaintiff (Provisional Liquidator of Fortune International Bank Plc (in Liquidation) against Union Bank Plc and Cowrie Business Solutions Ltd in suit No. FHC/L/CS/663/2022 before the Federal High Court, Lagos Division, (hereinafter referred to as the trial court).

The facts in the claim disclosed, among other things, that on 16th January, 2006, the Central Bank of Nigeria pursuant to section 12 of the Banks and other Financial Institutions Act (BOFIA) revoked the licenses of 14 banks operating in Nigeria which could not meet with the requirement of N25 Billion minimum capital base. Fortune International Bank Plc (hereinafter referred to as FIB Plc), a commercial bank, was one of the banks whose licence was revoked.

The applicant (NDIC) was appointed as the provisional liquidator of Fortune International Bank Ltd (now in liquidation). Before then, Fortune Bank International had taken a loan from Union Bank Plc to the tune of over two billion Naira which it failed to liquidate.

In the exercise of its duties, NDIC moved to secure the movable and immovable assets of the failed bank. Its effort to take over the management of Fortune Towers was however resisted by the 2nd respondent (Union Bank Plc) and the appellant/1st respondent (Cowries Business Solutions Ltd). This prompted the applicant to file an action at the trial court on 31-05-2011 wherein it sought the following declaratory and other reliefs as follows: (pages 5-94 Vol. 1 of the record):

(1) “A declaration that the disposition by means of sale or assignment by the 1st defendant to the 2nd defendant sometime in the month of July 2007 of all that piece of land, building, appurtenances situate, lying and being at No. 27/29 Adeyemo Alakija Street, Victoria Island Lagos, Lagos State and registered under the Federal Certificate of Occupancy No. 14/14/75 otherwise known as “Fortune Towers” when the said property forms part of the assets of Fortune International Bank Plc (in Liquidation) whilst a winding up proceedings in suit No. FHC/L/CP/36/2006 – NDIC v. Fortune International Bank Plc is pending and a provisional liquidator duly appointed by the said court is ineffectual, illegal, unlawful, null and void.

(2) A declaration that the disposition by means of sale or assignment by the 1st defendant to the 2nd defendant on or about the month of July 2007 of all that piece of land, building and appurtenances lying behind and situated at No. 27/29 Adeyemo Alkija Street Victoria Island, Lagos State and registered under the Federal Certificate of Occupancy No. 14114175 otherwise known as Fortune Towers when the 2nd defendant was yet to be incorporated as a limited liability company is illegal, unlawful, null and void.