Alleged N50bn Debt: Court Dismisses AMCON Appeal Against Bi-Courtney

Alleged N50bn Debt: Court Dismisses AMCON Appeal Against Bi-Courtney

The Court of Appeal in Lagos yesterday dismissed the appeal filed by Asset Management Corporation of Nigeria (AMCON), challenging a ruling of a Federal High Court in Lagos over an alleged N50billion debt owed the corporation by Bi-Courtney Group.

Justice Ibrahim Buba, had in a ruling last October, vacated an order granting leave to AMCON to take over assets of companies belonging to the chairman of Bi-Courtney Group, Dr Wale Babalakin, including Murtala Muhammed International Airport, Terminal 2.

Justice Buba vacated the order which was earlier granted by another judge of the court, Justice Okon Abang, on the grounds that AMCON fraudulently obtained it.

But dissatisfied with the ruling, AMCON in a notice of appeal instituted on its behalf by its lawyer, Mr Olisa Agbakoba (SAN), argued that the orders of the lower court setting aside Justice Abang’s orders were made without jurisdiction, as it was trite in law that a court cannot grant prayers not sought by any of the parties before it.

The appellate court in a unanimous decision yesterday upheld the decision of the lower court, adding that the circumstances under which AMCON obtained the ex-parte order against Bi-Courtney Group amounted to an abuse of court process.

In the judgement read by the presiding justice, Justice Sidi Bage, the Appeal Court held that the ex-parte order was obtained in the face of the subsisting order of Justice A. M. Liman delivered on November 4, 2011.

restraining the federal government and its agencies from taking any steps to take over Bi-Courtney Group.

The appellate court held that the lower court judge did not raise any issue suo motu as alleged by the appellant (AMCON).

Other justices on the panel are Justice Samuel Oseji and Justice Yargata Nimpar respectively.

The court observed that parties extensively addressed the lower court on the issue of abuse of court process.

Justice Abang had an order delivered on September 22, 2014 appointed, Agbakoba, a former President of the Nigerian Bar Association (NBA), as the receiver/manager over Bi-Courtney assets, including the Murtala Mohammed International Airport, Terminal 2.

But, these orders were set aside by Justice Buba, who held that the orders were an abuse of court process because it was obtained by Agbakoba through concealment of fact.

Other companies affected by the order are: Chartered Investment Limited, Resort International Limited and Roygate Properties Limited.

However, AMCON in it notice of appeal stated that Justice Buba misdirected himself when he heard and granted the oral application of lawyers to the Bi-Courtney Group to vacate the receivership, possession and freezing orders made by Justice Abang on September 22, 2014 without such application being fixed for hearing.

AMCON argued that Part XIV of AMCON Practice Directions, 2013 was clear that all applications other than a simple application must be filed and served on each party before hearing.

The appellant stated that the trial judge erred in law when he held that the orders of Justice Abang amounted to abuse of court process, as the cause of action in the suit before Justice Buba was different from that which Justice Abang based his orders.

It further maintained that there was a full disclosure of all relevant materials and facts at the time Justice Abang was moved to grant the orders, and as such Justice Buba was legally wrong to arrive at the conclusion that AMCON misled Justice Abang.

AMCON averred that Justice Buba was equally wrong when he held that the discharge of Justice Abang’s orders had concluded the suit, as Sections 49 and 50 of AMCON Act allows the appellant a period of 14 days from the date an order is granted to file a debt recovery action.