Directors of General Hydrocarbons Limited (GHL) have launched global legal proceedings against First Bank Holdings Plc, seeking $1 billion each in damages for defamation and wrongful freezing of their accounts. This follows a landmark ruling by the Federal High Court in Lagos, which set aside an asset-freezing order in the ongoing legal dispute between GHL and First Bank over a $225.8 million loan arrangement.
Court Overturns Asset Freeze Against GHL
The Mareva injunction, which had frozen GHL’s assets, was lifted after the court found that First Bank had misled the judiciary by failing to disclose an earlier order barring the bank from enforcing loan recovery measures before arbitration proceedings concluded.
Justice Dehinde Dipeolu ruled that the injunction violated a prior court decision, stating:
“The Mareva order granted by this Court on December 30, 2024, is hereby set aside.”
GHL’s legal team, led by Abiodun Layonu (SAN) and Olumide Aju (SAN), successfully argued that First Bank’s actions amounted to judicial abuse and fraudulent misrepresentation, which resulted in severe financial harm to GHL and its executives.
GHL Launches Legal Action Against First Bank
Following the ruling, GHL directors have initiated lawsuits worldwide against First Bank for wrongful financial restrictions and reputational damage. They argue that the unlawful asset freeze disrupted their businesses and personal finances, leading to significant losses.
Additionally, GHL has filed a complaint against First Bank’s legal team with the Legal Practitioners Privileges Committee, alleging professional misconduct by lawyers Babajide Koku (SAN) and Victor Ogude (SAN).
Background of the Dispute
The legal battle stems from a loan agreement between First Bank of Nigeria Limited (a subsidiary of First Bank Holdings) and GHL, GHL 121 Ltd, Aimonte Nigeria Limited, and Schlumberger Nigeria Limited.
Despite a December 12, 2024, ruling by Justice Lewis-Allagoa, which prohibited First Bank from taking recovery actions until arbitration concluded, the bank still obtained an ex parte Mareva injunction, leading to the asset freeze.
However, the court later ruled that First Bank had suppressed critical facts while obtaining the injunction, making it legally unsound.
Social Media Controversy Over Court Ruling
Following the ruling, there have been attempts to misrepresent the verdict on social media, with some parties allegedly falsifying documents to suggest the injunction remains valid. GHL maintains that the court has fully vacated the freezing order and dismissed all claims against the company.
What you should note?
- The case has been adjourned to February 19, 2025, for further proceedings.
- GHL’s lawsuits against First Bank and its legal representatives are expected to proceed across multiple jurisdictions.
- The ruling could set a precedent for how banks handle corporate loan disputes in Nigeria.
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