•Judge: It’s classic case of abuse of court process 

•Sets aside all orders against oil company

Emmanuel Addeh in Abuja

A federal high court sitting in Port Harcourt has dismissed the suit filed against General Hydrocarbons Limited (GHL) by First Bank of Nigeria (FBN).

Justice E.A Obile dismissed the entire suit on the grounds that the court is bereft of requisite jurisdiction to entertain the case, upholding the arguments of counsel to General Hydrocarbons Limited, Dr ‘Biodun Layonu (SAN).

In dismissing the case, the court upheld GHL’s notice of preliminary objection challenging its jurisdiction to entertain the suit.

The court agreed with the GHL’s submissions in the notice of preliminary objection and dismissed the entire suit file by FBN for being an abuse of court process and a breach of the orders of Justice Allagoa  issued on December 12, 2024 in Suit No FHC/L/CS/1953/2024.

The court held that First Bank conceded in paragraphs 18 and 19 of its counter affidavit opposing the defendants’ notice of preliminary objection that the order made by Allagoa restrained it from enforcing any receivables arising from the facility agreement entered into by the parties.

The court further held that the plaintiff’s attempt to distinguish the instant suit from Suit No.FHC/L/CS/1953/2024 could not stand, as every subsequent agreement entered into by the parties was pursuant to the legally enforceable Memorandum of Understanding (MoU) between GHL and FBN which was breached repeatedly by FBN.

The court consequently held that by the instant suit, First Bank  approached the court to do the very act which Justice Allagoa had restricted it from doing, and as such, the suit was a ‘classic case’ of abuse of court process, and consequently dismissed the suit.

The court  also upheld the argument of GHL that the ex-parte orders of January 9, 2025 had lapsed by operation of law.

The ex-parte orders made on January 9, 2025 were as follows: “An order to arrest and/or attach or lien the entire cargo of crude oil on board the Floating Production Storage and Offloading (FPSO) vessel Tamara Tokoni.

“An order directing the officers of the Nigerian Navy, NUPRC, NIMASA, Harbour Master of the Nigeria Ports Authority to render necessary assistance to the Admiralty Marshall of the Court in giving effect to the order of arrest made in (a) above.”

The court held that the above orders had lapsed automatically by effluxion of time and consequently set them aside.

This has now paved the way for an unhindered arbitration at the Lagos Court of Arbitration where GHL had dragged FBN seeking hundreds of millions dollars in damages for multiple breaches of the bank’s obligations.

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