Honeywell Flour Mills Plc V Ecobank Nigeria Ltd (2018)

LAWGLOBAL HUB Lead Judgment Report

AMIRU SANUSI, J.S.C.

FACTS – The respondent on 16th of October 2015, filed a Winding Up petition against the appellant before the Federal High Court, Lagos (the trial Court) in Suit No.FHC/L /1569/15 along with a Motion Exparte.

On the 27th of October, 2015 and in a well considered ruling, the trial Court refused to grant the orders, instead the trial judge directed the respondent to put the appellant on notice and adjourned the proceeding to a later date.

The learned counsel for the appellant stated that as a result of unsuccessful effort to obtain the Exparte orders against the appellant the petitioner re presented the application before Justice J. Tsoho who as well as refused to grant the Exparte orders and presented them to the Registry of the same as designated as NO.FHC/L/CP/1689/2015. On the 18th November, 2015, Justice Yunusa of the same Court granted the Exparte orders which had earlier been expressly declined by Justice Tsoho which are found at pages 39-49 of the Record, while the one granted by Justice Yunusa J., are found at pages 674-678 of the Record.

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The facts leading to the institution of this appeal is that, in satisfaction of the liabilities arising out of bank/customers relationship between the appellant and the respondent. Both parties agreed that the sum of N3.5 Billion be paid as full and final liquidation of the said indebtedness. After the payment of the sum was completed in January, 2014, the respondent still communicated to the appellant that it was indebted to it, despite the payment of N3.5 Billion, advancing various reasons.

In reaction, the appellant commenced Dispute resolution Proceedings before the Bankers’ Committee which comprises, the CBN, and a representation from both parties. The Committee reached a decision in favour of the appellant to the effect that the agreement to pay the sum N3.5 Billion in full and final liquidation of the appellant, was valid and that those payments discharged those obligations. It was stated that it was after the respondent’s insistence that the appellant was still indebted to it and the respondent’s refusal to abide by the Bankers Committee’s decision and the refusal to release all securities used as a collaboration that led to the commencement of Suit No.FHC/L/1219/15

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for the determination that the appellant was no longer indebted to the respondent, among other Prayers.

The learned appellant’s stated further that the respondent filed Suit No. FHC/1219/15 on the 6/10/15 (See pages 142-178) of the Record contending that the FHC did not have jurisdiction to hear the dispute between it and the appellant and that it is only the State High Court that could adjudicate in the dispute being a matter of simple contract between them. While that and the ruling on the issue of jurisdiction were all pending, the respondent yet commenced a Winding Up proceedings at the FHC on the same facts as those on which issues had been joined in Suit No.FHC/L/1219/2015. He stated that in view of the fact the Winding Up petition before Yunusa, J., was abusive of the one filed before Tsoho J., all of the same FHC, the appellant filed an application dated November 23rd, 2015 requesting the discharge of the Exparte order granted by Yunusa J. The trial Court, (coram Yunusa J.) heard the Appellant’s application but failed to discharge the Exparte orders.

On appeal to the Court below, the Exparte orders were discharged and the Court struck out

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some grounds of appeal before it, on the basis that leave to appeal was required in respect of the said grounds even though the appeal was in respect of grant of injunction by the trial Court. It is on this premise that the appellant has presented this appeal against the portion of the judgment of the Court below.

Parties filed and exchanged briefs of argument. An appellant Brief of Argument, settled by Olabode Olanipekun was filed on 15th August, 2016. In the said brief of argument, three issues were decoded for determination which are set out hereunder:-