The Shell Petroleum Development Company Of Nigeria Limited & Ors V. Crestar Intergrated Natural Resources Limited (2015)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

ABIMBOLA OSARUGUE OBASEKI-ADEJUMO, J.C.A. (Delivering the Lead Ruling)

This is an application by the Respondent/Applicant dated and filed on 19/5/15 following an appeal lodged against the Ruling of the Federal High Court delivered by Idris J. on 30/3/15 dismissing the motion challenging jurisdiction of the Lower Court as well as motion to stay proceedings and discharge Ex parte Orders.

The Applicant seeks for the following reliefs:

“AN ORDER of injunction restraining the Appellants/Respondent, whether by themselves, their management, servants, agents, privies, proxies, representatives, nominees or Solicitors or any other person howsoever called acting under or pursuant to their authority from proceeding or continuing with or taking any further steps In the Arbitration Proceedings with international Court of Arbitration (ICC) Number 21012/TO between 1. THE SHELL PETROLEUM DEVELOPMENT COMPANY OF NIGERIA LIMITED. 2. TOTAL E & P NIGERIA LIMITED. 3. NIGERIAN AGIP OIL COMPANY LIMITED VS CRESTAR INTEGRATED NATURAL RESOURCES LIMITED which was commenced by Appellants in this appeal on 20th April 2015 vide REQUEST FOR ARBITRATION dated 20TH APRIL 2015 and issued by

Appellant’s Solicitors Messrs CLIFFORD CHANCE LLP OF 10 Upper Bank Street Canary Wharf London E14 5JJ United kingdom, pending the final determination of this appeal which was brought by the Appellants

AND for such further and/or other Order(s) as this Honourable Court may deem fit to make in the circumstances.”

The application was based on 14 grounds and an affidavit of 27 paragraphs in support and accompanied by exhibits CINRL 1 ? CINRL 8; which are copies of the SPA executed by parties; termination letter; certified ruling of Lower Court enrolled order of Court; Respondent’s notice and notice of cross-appeal; Request for Arbitration by Respondents.

The Respondent/Applicant filed a further affidavit in support deposed by Temitope Ishola and filed on 23/6/2015 of 24 paragraphs and eleven exhibits, viz CINRL 10 – CINRL 11 accompanied by a written address in support of its motion filed on 8/7 /2015.

?The Appellants/Respondents to the application filed a Counter Affidavit in opposition to the Respondent/Applicant’s application of 19/5/2015 deposed by Enobong Ozor of 52 paragraphs with exhibits EO-1 -EO-5 and a further affidavit of 24/7/2015 of (5) five

paragraphs with 2 exhibits EO7- EO8 attached, together with a written address in opposition to the Respondent’s Application of 19/5/2015 by Babatunde Fagbohunlu SAN, Chukwuka Ikwuazom, Hamid Abdulkareem, Tosin Falaiye of Aluko Oyebode & Co; to which the Respondents/Applications filed a written address in Reply dated and filed 4/9/2015 deemed on 22/10/2015 and a Reply to Counter Affidavit on 25/6/15.

The Appellants/Respondents also filed a Notice of Preliminary Objection that the Court lacked jurisdiction to grant the relief sought by the Respondent on the ground that (1) the motion of 19/5/2015 seeks an injunction restraining the Appellants from taking any further steps in arbitral proceedings which they have commenced against the Respondent, to wit, ICC Arbitration Case 21012/TO, The Shell Petroleum Development Company, Total E & P Nigeria Limited and Nigerian Agip Oil Company Limited v. Crestar Integrated Natural Resources Limited. (2) By virtue of Section 34 of the Arbitration and Conciliation Act, Cap. A18, LFN 2004, the Honourable Court lacks jurisdiction to issue an injunction to restrain arbitral proceedings.

?The Respondent’s issue for

determination is “whether in the circumstances of this case this Court ought not to grant the prayers sought in the Applicant’s motion on Notice dated 19/5/2015.”

The Appellants/Respondents submitted three issues for determination are: