National Insurance Commission & Ors V. Fidelity Bond of Nigeria Limited & Ors (2016)

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SAMUEL CHUKWUDUMEBI OSEJI, J.C.A. 

This is an appeal against the Exparte Ruling/order of the Federal High Court, Lagos Division delivered by O.E ABANG J. on the 28-8-2012 in suit No FHC/L/CS/998/2012.

The Respondents herein had as Plaintiffs in the Lower Court instituted an action by way of originating summons dated 24-8-2012 against the Appellants herein, as Defendants whereby, they sought the determination of 11 questions presented and if answered in their favour, the following reliefs should be granted by the Court. To wit:-
(i) A DECLARATION that the prohibition of the 1st Plaintiff by the 1st Defendant from transacting Insurance business for a period of 6 months with effect from the 6th day of August 2012 via its letter with reference No. NAICOM/DCT/FBIB/01 dated the 6th of August 2012 on the basis of the directive/decisions of the Financial Reporting Council of Nigeria contained in its letter reference Nos. FRC/NAICOM/NONCOM/016/11 both dated the 31st of July 2012 to the 2nd and 3rd Plaintiffs herein without giving the 1st Plaintiff an opportunity to be heard before the prohibition order

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was made and without waiting for the final determination of the validity or vires of the directive/decisions of the Financial Reporting Council of Nigeria in suit No. FHC/CS/910/201 between the 2nd Plaintiff herein and the Financial Reporting Council of Nigeria is a breach of the 1st Plaintiff?s fundamental rights to fair hearing guaranteed by Section 36 of the 1999 Constitution;
(ii) A DECLARATION that the prohibition of the 2nd and 3rd Plaintiffs by the 1st Defendant from transacting Insurance business for a period of 6 months with effect from the 6th day of August 2012 or any further period via its letters with reference Nos. NAICOM/DCT/A&G/3 and NAICOM/DCT/A&G/4 both dated the 6th of August 2012 on the basis of the directives/decisions of the Financial Reporting Council of Nigeria contained in its letters reference Nos. FRC/NAICOM/NONCOM/016/11 both dated the 31st of July 2012 to the 2nd and 3rd Plaintiffs without giving the 2nd and 3rd Plaintiffs an opportunity to be heard before the prohibition order was made and without waiting for the final determination of the validity or vires of the directive/decisions of the Financial Reporting

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Council of Nigeria in suit No. FHC/L/CS/910/2012 between the 2nd Plaintiff herein and the Financial Reporting Council of Nigeria is a breach of the 2nd and 3rd Plaintiff?s fundamental rights to fair hearing guaranteed by Section 36 of the 1999 Constitution of the Federal Republic of Nigeria;
(iii) A DECLARATION that the 1st Defendant cannot implement, enforce and execute the prohibition of the Plaintiffs from transacting insurance business for a period of 6 months with effect from the 6th day of August 2012 or any further period via its letters reference Nos. NAICOM/DCT/FBIB/01, NAICOM/DCT/A&G/3 and NAICOM/ DCT/A&G/4 all of 6th of August 2012 on the basis of the directive/decisions of the Financial Reporting Council of Nigeria contained in its letters reference Nos. FRC/NAICOM/NONCOM/1016/11 both dated the 31st of July 2012 before hearing the Plaintiffs and before the final determination of the validity or vires of the directives/decisions of the Financial Reporting Council of Nigeria in suit No. FHC/L/CS/910/2012 between the 2nd Plaintiff herein and the Financial Reporting Council of Nigeria without violating the Plaintiffs?

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fundamental rights to fair hearing guaranteed by Section 36 of the 1999 Constitution;
(iv) A DECLARATION that the 1st Defendant cannot prohibit the Plaintiffs from transacting insurance business for a period of 6 months with effect from the 6th day of August 2012 or implement, enforce or give effect to the prohibition of the Plaintiffs from transacting insurance business for a period of 6 months with effect from 6th day of August 2012 or any further period without complying with the provisions of Section 38, 39, 40 and 41 of the National Insurance Commission Act Cap N53, LFN 2004;
(v) A DECLARATION that unless and until the final determination of the validity or vires of the directive/decisions of the Financial Reporting Council of Nigeria in suit No. FHC/L/CS/910/2012 between the Plaintiff herein and the Financial Reporting Council of Nigeria, the Defendants cannot exercise any of the powers specified in Section 4(2), 42 and 43 of the National Insurance Commission Act on the Plaintiffs;
(iv) A DECLARATION that the Defendants cannot exercise or further exercise any of the powers specified in Section 41(2), 42, 43, 44 and 45 of the National

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Insurance Commission Act on the Plaintiffs including removing the directors and/or management of the Plaintiffs or appointing new directors and/or a new management to assume the control and management of the Plaintiffs or revoking the registration of the Plaintiffs without giving the Plaintiffs an opportunity to be heard, without waiting for the final determination of the validity or vires of the directives/decisions of the Financial Reporting Council of Nigeria in suit No. FHC/L/CS/910/2012 between the 2nd Plaintiff herein and the Financial Reporting Council of Nigeria and without complying with the provisions of the National Insurance Commission Act Cap N53, LFN 2004;
(vii) A DECLARATION that the refusal of the 1st Defendant to give its final approval to the merger of the 2nd and 3rd Plaintiffs which was sanctioned by the Federal High Court Lagos (Coram: O. Okeke J) on the 30th of January 2012 and registered with the Corporate Affairs Commission, Abuja on the 27th of February 2012 is oppressive, unlawful and a breach of the provisions of the Insurance Act 2003;
(viii) A DECLARATION that the treatment of Alliance & General Insurance Co. Ltd (RC

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No. 93906) and Alliance & General Life Assurance Plc (RC No. 7215) at all material times by the 1st Defendants as two different companies instead of one company after the merger sanctioned by the Federal High Court Lagos (Coram: O.Okeke) on the 30th of January 2012 and registered with the Corporate Affairs Commission, Abuja on the 27th of February 2012 renders all punitive actions by the 1st Defendant on the 2nd and 3rd Plaintiffs sequel to the merger unlawful invalid, null and void;
(ix) AN INJUNCTION restraining the 1st Defendant by itself, its directors, officers, servants, agents, privies or otherwise howsoever from implementing, enforcing or giving effect to the prohibition of the Plaintiffs from transacting insurance business for a period of 6 months with effect from the 6th day of august 2012 or any further period as per the 1st Defendant?s letters with reference Nos. NAICOM/DCT/FBIB/01, NAICOM/COM/DCT/A&G/3 and NAICOM/DCT/A&G/4 and of the 6th of August 2012;
(x) AN ORDER of this Honourable Court cancelling, quashing and nullifying the prohibition order contained in the 1st Defendant?s letter with reference Nos.

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