You Can't Enforce N212.2 billion London Judgment On Akingbola in Nigeria, Court Tells Access Bank

You Can't Enforce N212.2 billion London Judgment On Akingbola in Nigeria, Court Tells Access Bank

Justice Chukwujeku Aneke of the Federal High Court in Lagos yesterday told Access Bank Plc that the £654 million (N212.2 billion) judgment it obtained against former Managing Director of the defunct Intercontinental Bank, Erastus Akingbola from a London Court is not enforceable in Nigeria.

Justice Aneke stated this while ruling on an application filed by Access Bank to enforce the London judgment in the country.

It would be recalled that earlier in February this year, Justice Babajide Candide-Johnson of the Lagos high court in Igbosere had also rejected a similar application filed by Access Bank.

The high court of justice, Queens Bench in London, had on August 1, 2012, ordered Akingbola to pay Access Bank £654 million (N212.2 billion) for some alleged fraudulent practices committed when he was in charge of the defunct bank.

Justice Aneke in Monday’s judgment held that Justice Burton's admission of hear- say evidence in reaching the judgment ran counter to Nigerian law and practice which placed premium on cross examination of witness by counsels. 

In addition, Justice Aneke explained that denying Akingbola the right to appeal the judgment amounted to a breach of his fundamental right which no Nigerian court could do.

Quoting several Supreme Court cases he stated that the right of appeal was every Nigerian's inalienable right adding that the London court contravened this fundamental provision of the constitution. 

Access Bank, it would be recalled, had acquired Intercontinental Bank on January 31, 2012 after the bank was taken over by the Asset Management Corporation of Nigeria (AMCON).

After obtaining the London Court judgment, Access Bank had approached Justice A.A Oyebanji of Lagos high court with an ex parte application seeking to register the foreign judgment and the accompanying order.

After listing to the application, Justice Oyebanji had granted the request of the bank by registering the London judgment and ordering Akingbola to pay the judgment sum.

However, the former bank chief, through his lawyer, Wole Olanipekun (SAN), filed an application dated September 27, 2013, asking Justice Candide-Johnson of the Lagos high court to quash the registration of the foreign judgment for lack of jurisdiction.

Justice Candide-Johnson while discharging the ex parte order made by Justice Oyebanji held that Access Bank’s move contravened provisions of the Reciprocal Enforcement of Judgment Act of 1958.

The judge also declared that the Lagos High Court lacked jurisdiction to register the judgment.

The judge held that the subject matter of the judgment, which was alleged unlawful share purchase orchestrated by the bank and Akingbola’s breach of statutory duties as director of defunct Intercontinental Bank, were matters relating to the provisions of the Companies and Allied Matters Act (CAMA), which the British judge admitted he relied totally on, but which only Nigerian courts and specifically federal High Court could properly exercise jurisdiction.

Justice Candide-Johnson had further held that since Federal High Courts alone have exclusive jurisdiction on CAMA related cases, his court could not have entertained the claims leading up to the judgment and consequently could not register same as that would make it a judgment of the court.

The judge, however, refused Akingbola’s prayer seeking to restrain Access Bank from enforcing the London judgment in any other court.

“Instead of granting such order, the proper order to make in this case is to strike out the entire suit and same is hereby struck out,” Candide-Johnson ruled.

Olanipekun had, while arguing the case on behalf of his client (Akingbola), stressed that the judgment creditor (Access Bank) failed to comply with condition precedent before the registration could be completed.

He submitted that Section 251 of the Constitution vested the jurisdiction on Federal High Court and not on State High Court.

Responding, counsel to Access Bank, Olaniwun Ajayi (SAN), in a counter-affidavit dated October 10, 2013,  submitted that the proposition that only the Federal High Court had jurisdiction to register foreign judgments should be discountenanced.

He submitted that the State High Courts had unlimited power to look into the matter.