First Bank of Nigeria (FBN) has finally admitted defeat in the Mareva Case between it and General Hydrocarbons Limited (GHL), and has begun seeking appeal in a desperate attempt to overturn the ruling by Honourable Justice Deinde Dipeolu of the Federal High Court, Lagos.
In a statement on Sunday First Bank acknowledged recent media reports suggesting that some banks had begun complying with the ruling of Justice Dipeolu’s order which lifted the Mareva order placed on GHL, its directors, and shareholders.
However, it said such action was premature, as the necessary steps for banks and stakeholders to comply with the court’s decision had not yet been completed.
Notwithstanding the above, First Bank says it has appealed against the discharge of the Mareva Order and applied for an injunction and/or suspension of the discharge order pending the determination of the appeal. “In view of the pending appeal and Motion for Injunction, banks are expected to maintain the status quo.”
Meanwhile, GHL on Sunday accused FBN of seeking to abuse court process by asking banks not to obey Justice Dipeolu’s ruling when the court had not granted any stay.
A statement by the oil firm pointed out that the FBN has also falsely informed the public that it has filed a notice of appeal against the said orders of Justice Deinde Dipeolu, lifting the Mareva orders, together with an application for injunction/suspension of the discharge order.
It stated unequivocally that at the time of this publication on Sunday night, no notice of appeal or motion for injunction had been filed by FBN against the discharge orders of Justice Dipeolu, explaining that if they had been filed, they had not been served on GHL.
“Our attention has been drawn to various reports and advertisements by First Bank over the weekend purportedly proffering reasons why the banks should not comply with the orders of Hon. Justice Deinde Dipeolu lifting the interim Mareva orders and other orders made on 30 December, 2024 claiming they have appealed or are appealing the ruling of Justice Dipeolu in the dispute between FBN and GHL over FBN’s non compliance with its obligations.
“The purported appeal process filed by FBN and the said motion for injunction/ suspension of the discharge order, is another incidence of gross abuse of process. Compliance with the order is therefore a completed act and does not need any further steps to be taken as erroneously claimed by FBN. In law you cannot injunct a completed act,” GHL argued.
Secondly, it maintained that the order discharging the Mareva is a declarative order, observing that in law, a declarative order cannot be stayed neither can it be suspended , particularly after it has been obeyed.
It reiterated and confirmed that banks have complied with the extant orders of court, except perhaps FBN.
“These orders were set aside by Justice Dipeolu, primarily because FBN had deliberately withheld material facts about an existing order of court made by Justice Allagoa restraining FBN from approaching the courts (or any other forum) to enforce the facility agreement between FBN and GHL pending the arbitration between the parties which was initiated almost two months before FBN had approached Dipeolu J. for the interim Mareva orders.
“It is important to state that orders of court are valid and enforceable upon pronouncement and do not require more for them to come into effect. The order of Justice Dipeolu lifting the Mareva orders is therefore the status quo between the parties with respect to accounts maintained by GHL, its directors and shareholders with the banks,” GHL said.
It explained that even if these court processes had been filed and served on GHL, they do not have the effect that FBN has deliberately misrepresented to the public.
This, according to the statement, is so because no positive orders of court have been made in respect of the court processes to bind the banks or GHL.
“In all, it is safe to say that these publications have been made without appropriate legal advice and we urge the public to disregard them.
“In the interim, the arbitration process initiated by GHL in relation to FBN’s non compliance with its obligations upon which it declared profit from a loss position I. 2021/2022 is ongoing and GHL remains committed to participating in that process and bringing this dispute to a logical conclusion,” the company stated.
