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Court orders Ecobank to pay Honeywell N72.2bn, after eight-year legal battle

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Court orders Ecobank to pay Honeywell N72.2bn, after eight-year legal battle

Court orders Ecobank to pay Honeywell N72.2bn, after eight-year legal battle

Following its eight years legal battle with Ecobank Nigeria, Honeywell Flour Mills (HFMP) has been awarded N72.2 billion in damages by Justice Mohammed Liman of the Federal High Court, Lagos.

Justice Liman, who presided over the case, granted the requests of Honeywell Flour against Ecobank on Tuesday in the legal battle that started after the lender refused the manufacturer access to its accounts in 2015.

Honeywell Flour’s accounts were frozen in November 2015 when Ecobank secured an ex parte order, which was granted on the condition that the financial institution will compensate the former for harm or loss caused by the action.

Ecobank had shut Honeywell Flour out of their accounts in an attempt to wind up the latter over an alleged outstanding debt owed by the manufacturer.

Recall that Ripples Nigeria reported that Ecobank alleged Honeywell Group, former owner of Honeywell Flour, owes the company N13.5 billion, as outstanding debt.

The lender has also moved to block Oba Otudeko, Honeywell Group’s founder, from becoming the largest shareholder of FBN Holdings in a bid to recover the alleged debt.

Read Also: EFCC Kicks Against Court Order Permitting Ex-Anambra Governor Obiano to Travel Abroad

Meanwhile, due to the losses Honeywell Flour claimed following the freezing of its company account, Justice Liman ordered Ecobank to pay the company N72.2 billion in damages.

The damage fee is 23 per cent of Ecobank’s first quarter turnover in 2023 when the company generated N313.17 billion.

Loss of revenue and interest on unutilised cash balances are some of the reasons claimed to have caused the losses. Also listed are foreign exchange devaluation, aggravated and exemplary damages.

Liman told the parties involved in the case that: “The plaintiff was denied the use of funds in his account based on the ex parte order granted in favour of the defendant. It is therefore my firm view that the plaintiff (Honeywell) is entitled to the amount claimed… The argument of the defendant in his written address is therefore not acceptable as the contents of the document are the best evidence and they speak for themselves.”

The judge also condemned Ecobank’s lawyer for being ignorant of the law relating to the ex parte order, “the purpose of an undertaking to pay damages has been held in a legion of cases to indemnify the party for the losses he may suffer on the bases of an ex parte order.

“Note that Rule 4 of the Winding Up Rules provides that all applications which affect the rights of parties in a winding-up proceeding must be made on notice.

“The provisions of the winding up rules are very clear and unambiguous. The defendant cannot claim ignorance of this provision as ignorance of the law is no excuse and it is even more inexcusable if it is committed by a lawyer. The ex parte application was therefore made ultra vires,” he said.

Court orders Ecobank to pay Honeywell N72.2bn, after eight-year legal battle

Crime

Trader bags 9 months jail term for attempted theft

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Trader bags 9 months jail term for attempted theft

A Jos Magistrates’ Court on Monday sentenced a 20-year-old trader, Darwang Chung, to nine months in prison for attempted theft.

Chung, who resides at Gyel in Jos South, pleaded guilty to the one count charge of attempted theft.

The Magistrate, Mr Shawomi Bokkos, summarily tried and sentenced the convict after he pleaded guilty to the charge.

Bokkos, in his judgement, gave the convict an option of N30,000 fine, or to risk six months in prison and a compensation of N15,000 or another 3 months in prison in default.

Earlier, the Prosecutor, Insp. Labaran Ahmed, told the court that the case was reported on Oct. 6, at the”B” Division Police Station by one Yohanna Dalyop, the complainant.

Ahmed said the convict jumped over the fence into the house of the complainant and was caught.

He said that the offence contravened the Plateau State Penal Code Law.

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Judiciary

Alleged Procurement Fraud: Emefiele’s coys got preferential treatment – witness tells court

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prosecution witness, Mr Stephen Gana, on Monday told an Abuja High Court that two companies belonging to former Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele got preferential treatments in vehicle procurement contracts bidding.

The witness, made this known while testifying in the case of alleged procurement fraud preferred against Emefiele  by the Economic and Financial Crimes Commission (EFCC).

Gana who is the Prosecution Witness (PW10), was the former Head of Procurement Department.

The witness led in evidence by the prosecution counsel, Rotimi Oyedepo, SAN confirmed that he was in office when  contracts for vehicles contained in Exhibits F4 to F45, were approved.

The witness told the court that Toyota vehicles obtained at the cost of N99,900,000 was acquired by the CBN from April ”1616” Company Ltd through direct procurement .

Referring to Exhibit F5, Gana said two Toyota hilux were obtained at the cost of N23,100,000 each through selective bidding.

He said April 1616 company, was awarded the contract having placed the lowest bid and aligning with the CBN’s in-house estimate of the same sum.

Earlier, the witness had testified that at the CBN, contracts could be awarded through direct procurement or selective bidding.

He added, depending on the guidance of the Director of procurement department who works in team with the Deputy Director, the Head of Procurement(himself) and the procurement officer.

After his testimony, the prosecution counsel prayed the court to grant him an adjournment different from the earlier date of Oct. 22.

“I am appearing in a case filed by Kogi and 15 other states against the EFCC in the Supreme court on Tuesday,” he told the court.

The defence counsel, Matthew Burkaa, however, did not object to the prayer but pointed out that cost of movement was high now and such be considered.

Justice Hamza Muazu then adjourned the matter until Nov 13, for continuation and hearing of the application.

Earlier, the defence counsel, Burkaa, had opposed the prosecution’s amended additional proof of evidence served on them.

Burkaa challenged the process and manifestation of intent to call two witnesses who were not listed earlier.

He said the defence was not challenging the charge but bringing in of new witnesses to testify.

NAN reports that Emefiele was alleged to have engaged in criminal breach of trust, forgery, conspiracy to obtain by false pretence and obtaining money by false pretence, when he served as the apex bank’s boss.

Among the allegations was that the former CBN boss forged a document titled: Re: Presidential Directive on Foreign Election Observer Missions dated January 26, 2023 with Ref No. SGF.43/L.01/201 and purported same to have emanated from the office of the Secretary to the Government of the Federation (AGF).

He is also accused of using his office as CBN governor to confer unfair and corrupt advantage on two companies; April 1616 Nigeria Ltd and Architekon Nigeria Ltd in suit marked: FCT/HC/CR/577/2023.

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Judiciary

Akinlade faults irregular dressing to court by law students externs

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Akinlade faults irregular dressing to court by law students externs

The Convener of the Duty Solicitors Network (DSN), Mr Bayo Akinlade, has urged legal practitioners to collaborate in educating law school externs on the proper dress code for court.

Akinlade spoke with the News Agency of Nigeria (NAN) on Monday regarding dress codes observed by some law school externs on court attachment.

NAN reports that students of Nigerian Law School have commenced their externship or court attachment, which is expected to run through several weeks.

These externships are compulsory for every law student before the bar final examinations.

According to him, some of these externs appear confused and have visibly drifted away from the acceptable mode of dressing provided by legal profession ethics.

Consequently, he called on legal practitioners to make it a duty to guide these externs on the proper dress code to court.

“When some lawyers dress inappropriately to court, I do my best to let them know as it reflects on their level of appreciation for ethics in this noble profession.

“For externs; it is sad to see some male externs wearing waistcoats without jackets or just plain whites with a black tie without jackets.

“The same goes for the female externs who wear a white blouse without a jacket.

“My concerns have been escalated several times to the law school which has consistently reiterated that the externs are required to wear a black jacket during their externship.

“It is unfortunate to still see some externs not properly dressed to court despite instructions from the law school,” he said.

He, therefore, urged senior lawyers, to join hands in leading the young law students on the right path, to preserve the ethics of legal practice.

“I would like to implore lawyers in practice to please correct improper dressings by externs and even colleagues and to ensure that even during chamber attachments, these externs wear the proper combination of attires.

“Until we are permitted or agree to wear our traditional cultural attire to court, the suit remains the standard,” he said.

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