The stake has risen higher in the legal tussle between Ecobank Nigeria and business mogul, Oba Otudeko following the appeal by the Pan African bank against a judgment delivered by a federal high court in Lagos this week.
The court, presided over by Justice M. Liman had awarded N72 billion damages against the bank, in a case brought by Honeywell Flour Mills, Plc, a company promoted by Otudeko.
The ruling came barely a week after Ecobank wrote First Bank to reject moves by Otudeko, a former Chairman of FBN Limited to become the highest equity holder in Nigeria’s premier commercial bank.
Recall that Otudeko acquired over 48 billion shares in FBN Holdings, in what keen stakeholders described as a smart move to stage his return to the commercial bank, more than two years after embattled Governor of the Central Bank of Nigeria, CBN, Godwin Emefiele sacked him over insider loan abuse, and his botched removal of Kazeem Adeduntan as FBNL managing director.
In response to the shares acquisition, Ecobank claimed that Otudeko was trying to evade a Supreme Court judgment ordering him and Flourmill to pay back over N13 billion owed the bank.
Otudeko, the bank alleged may have diverted the funds that should have been used to pay the N13.5 billion owed it to buying shares in First Bank.
The apex bank made the judgment in January this year.
But in what analysts have rightly described as a twist to the saga, Otudeko, this week, got a Federal High court judgment ordering the bank to pay him N72 billion damages.
Ecobank has however described the judgment as a miscarriage of justice, noting that the court has no jurisdiction after the Supreme Court had earlier delivered a judgment on the matter.
According to a statement, the bank said it has appealed the judgment with a view to overturning it at the Court of Appeal.
Among other prayers, the bank is seeking an order from the Court of Appeal to uphold its notice of preliminary objection, challenging the jurisdiction of the Federal High Court to preside over the matter.
Ecobank is also requesting the Court of Appeal to dismiss Honeywell’s claim at the lower court, asserting that the evidence presented did not support the claim.
Alongside the notice of appeal, Ecobank filed a motion on notice to stay the execution of the lower court’s judgment and to prevent Honeywell or any party acting on their behalf from taking advantage of the ruling pending the appeal hearing.
The bank also seeks to restrain the Deputy Sheriff of the Federal High Court, bailiffs, and any other involved parties from enforcing the judgment.
The Pan African bank said it has filed several grounds of appeal, including challenging the court’s jurisdiction to adjudicate on the matter.
It noted that the court lacked the power to entertain a claim for damages based on an undertaking made by the bank despite the judgment of the Supreme Court, which confirmed Honeywell’s indebtedness to Ecobank and directed Honeywell to settle its obligations.
The bank insist that Honeywell’s case has been nullified by the highest court in the country.
