Capt. Tito Omaghoni (Jp) & Ors. V. Nigeria Airways Limited (in Liquidation) & Ors. (2006)

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RHODES-VIVOUR, J.C.A.

This is an interlocutory appeal from the decision of the Federal High Court, Abuja Division, presided over by the Hon. Justice S. J. Adah.

The facts of this case, which are not in dispute, are briefly as follows:

In suit No. ABJ/PET/2/2004, in the matter of petition for liquidation of Nigeria Airways Ltd. Chikere, J., of the Federal High Court made the following order on 12/8/2004:

“1. That the liquidator to seek the assistance of the Nigeria Police in securing and protecting of the assets, premises and the liquidation process of Nigeria Airways Ltd. in Lagos and any other places where the assets of the company may be found in Nigeria.

2. No order as to costs.”

On 26/8/04, the appellants herein as plaintiffs sued the respondents herein as defendants on a writ of summons accompanied by statement of claim, wherein they claimed from the defendants jointly and severally as follows:

“(a) A declaration that the plaintiffs – both serving and retired – are entitled to be paid their terminal benefits by the 1st defendant in accordance with sections 172 and 173 of the Constitution of the Federal Republic of Nigeria, 1999 and that being employed by the Civil Service of the 3rd defendant, they are entitled to be paid to the tune of the full extent of the said entitlements.

(b) A declaration that in addition to the rights conferred upon the plaintiffs by section 173(2) of the Constitution, the plaintiffs are also creditors of the 1st defendant in so far as the said amounts making up their terminal benefits remain unpaid thus entitling them to full payment thereon as provided for in sections 425 and 494 of the Companies and Allied Matters Act, 1990 as well as participate in the asset distribution of the 1st defendant.

(c) A declaration that given the position of the 1st defendant as a parastatal of the 3rd defendant qua the 4th defendant, the 2nd defendant in performing his duties as liquidator of the 1st defendant is obliged to discharge his duties with the utmost level of transparency and accountability and in such manner as would not amount to an infraction on the rights accruing to the plaintiffs, whether under the Constitution of Nigeria or the Companies and Allied Matters Act, 1990.

(4) A declaration that the plaintiffs are entitled to a lien on the 1st defendant’s staff quarters/accommodations presently occupied by them as listed by their names in the schedule to the statement of claim, until the defendants jointly and severally settle the indebtedness of the 1st defendant to the plaintiffs by the payment to them of the full value of their terminal benefits whether accrued or still accruing to them by reason of their employment with the 1st defendant.

(e) A declaration that in the event of the defendants inability and/or failure to settle the indebtedness of the 1st defendant to the plaintiffs, the plaintiffs are entitled to a right of set off against the assessed value of the property.

(f) A declaration against the 3rd, 4th and 5th defendants that all assets belonging to the 1st defendant in its wholly owned subsidiaries to wit:

Skypower Hotel and Catering Services Ltd.;

Skypower Aviation Handling Company Ltd.;