Barbedos Ventures Limited V. First Bank Of Nigeria Plc (2016)

LAWGLOBAL HUB Lead Judgment Report

IBRAHIM T. MUHAMMAD, J.S.C.

Facts contained in the affidavit evidence of the parties to this interlocutory appeal reveal that the applicant is a liability company carrying on business as importers, exporters and general merchants with particular interest in the sale of fertilizer. The respondent is banker to the judgment debtor. In June 2008, the applicant was awarded a contract to supply Zamfara State Government, 12,500.00 metric tons of urea fertilizer at the cost of N1,462,000.00 (One Billion, Four Hundred and Sixty Two Million Naira) The applicant duly supplied the fertilizer but did not receive payment as agreed. Applicant went into arbitration with Zamfara State Government and they largely conceded to applicant’s claims. As a result, the Presiding Arbitrator made several awards to the applicant including interests and arbitration costs.

The applicant approached the High Court of Zamfara State for enforcement of the arbitral awards and applied for garnishee of Zamfara State Government funds with the respondent. The said High Court issued a garnishee Order NISI against the respondent, asking it to show cause why the Oder NISI should not be made ABSOLUTE.

The respondent filed its Garnishee’s affidavit of return and a further and better affidavit. After all entreaties, the High Court made the garnishee order NISI, ABSOLUTE against the respondent Aggrieved with the High Court’s decision, the respondent appealed to the Court of Appeal. The Sokoto Division or the Court of Appeal allowed the appeal and set aside the Order ABSOLUTE on the basis that the garnishee (i.e. respondent) has a charge on the debt. The appellant applicant was aggrieved with the Lower Court’s decision and it appealed to this court.

It is within the pendency of the appeal that the appellant filed this motion which sets out the following reliefs:

1. “AN ORDER directing the respondent to pay the sum of N2,340,772,726.00 (Two Billion, Three Hundred and Forty Million, Seven Hundred and Seventy Two Thousand, Seven Hundred and Twenty Six Nain) being the amount due to the appellant as at September 22nd 2014 pursuant to an arbitral award, into an interest yielding account in a reputable bank, which account shall be under the sole control of the Chief Registrar of this Honourable Court pending the determination of the appellant applicant’s appeal.
2. AN ORDER directing the respondent to pay to the above-mentioned account, whatever sum is calculated by the Chief Registrar to have accrued on the judgment-sum of N1,789,638,858 00 (One Billion, Seven Hundred and Eighty Nine Million, Six Hundred and Thirty Eight Thousand, Eight Hundred and Fifty Eight Nana), at the rate of 10% per annum (as ordered by the arbitral tribunal) from the above-mentioned dated of September 22, 2014 till the date this Honourable Court delivers its ruling an this application.
3. AN ORDER directing the Chief Registrar to forthwith place the sums or money referred la above on fixed deposit at the best ate available at any of the reputable banks in Nigeria and to open a separate account to facilitate the placement on fixed deposit, if necessary.

OR IN THE ALTERNATIVE TO THE ABOVE

4. AN ORDER granting accelerated hearing this appeal, so that same can be determined expeditiously and if judgment is given for the appellant, it can take urgent steps to liquidate its outstanding indebtedness to the respondent (which resulted from separate loan transactions) and reverse the negative credit rating that the Central Bank of Nigeria has placed an it due to the said debt.

AND

5. FOR SUCH OTHER ORDERS as this Honourable Court may deem fit to make in the circumstances.”

The Motion was supported by 8 grounds and a 69 paragraph-affidavit sworn to by one Malik Alfa Ahmadu, Esq. and some exhibits. The applicant filed a written address as well, supporting the motion.

The learned counsel for the respondent filed a counter-affidavit on 8/12/14. He also tiled on same dale a written address in opposition of the Motion on Notice.

This court heard the motion on the 3rd day of November, 2015. We held our conference on the application on Wednesday 11th of November, 2015. We considered all the depositions in the affidavit in support and the counter affidavit and we unanimously came to the conclusion that although the appeal was filed to this court in 2013, it involves heavy financial disputes affecting not only First Bank of Nigeria Plc as a Commercial Bank and another company, but also a State Government. My attention has been caught by some of the averments made by the parties. The applicant, in paragraphs 67 and 68 of affidavit in support deposed as follows:

“67 That in the event that this Honourable Court is not inclined to order payment into an interest yielding account, it would be just, as an alterative, far accelerated hearing to be granted.

68 That if this appeal can be determined in good time, the appellant can seek to pay back its debt to the respondent thereby avoiding bankruptcy and hopefully reversing the above-mentioned negative credit rating that is inter alia, affecting its ability to raise capital from other banks.”

The respondent, in its counter affidavit averred as follows:

“14. That country to the averments(sic) contained in paragraphs 43, 44 and 46 of the affidavit in support of the application, there is no GARNISHED MONEY in favour of the applicant with the respondent as at date.