In a gripping twist to the ongoing $225.8 million debt case between First Bank Nig. Ltd, FBN Quest Trustees Ltd, and General Hydrocarbons Limited (GHL), the Federal High Court sitting in Lagos has postponed proceedings to March 25, 2025, to deliberate on whether the case should be adjourned indefinitely.
The dramatic turn of events follows the appeals filed by both parties after the court’s controversial January 29 ruling.
The ruling, which set aside an ex-parte order freezing GHL’s assets, has sparked intense legal battles with contrasting interpretations from the parties involved. This has led to a series of appeals and applications that are now before the court.
At the heart of the dispute, First Bank contends that the freezing order against GHL, a major player in the oil and gas sector, was unjustly lifted and is seeking an injunction to reinstate it. The bank has asked the court for an order suspending the previous ruling while the appeal is pending. On the other hand, GHL has raised concerns about the jurisdiction of the suit, calling for its dismissal, citing an abuse of the court process.
In the latest proceedings before Justice Deinde Dipeolu, Senior Advocate of Nigeria (SAN), Victor Ogude, representing First Bank, requested an adjournment to allow him to file a response to a stay of proceedings application filed by the defendants. Ogude indicated that the complexities of the case, including the entry of appeals by the defendants, required a thorough review before moving forward.
Meanwhile, Olumide Aju, SAN, who appeared for the second to fifth defendants, including prominent Nigerian businessman Nduka Obaigbena and other GHL directors, argued that the case should be adjourned indefinitely (“sine die”) until the Court of Appeal resolves the issues of jurisdiction and the propriety of continuing the case during the appeal process.
Justice Dipeolu, after hearing submissions from both sides, has set March 25 as the date to decide on whether the case will proceed or be adjourned indefinitely.
This ruling will have far-reaching implications, not only for the parties involved but also for the broader corporate and financial sectors, as the case revolves around massive debts and corporate governance issues.
This legal drama continues to unfold as the fate of one of Nigeria’s major oil and gas companies hangs in the balance, with billions at stake.
The coming weeks promise to deliver more high-stakes twists, as all eyes remain fixed on the court’s next move in this high-profile battle.
