Business
Ecobank To Challenge N72.2bn Damages Awarded Honeywell
The last has not been heard of the protracted court case involving Ecobank Nigeria Limited and Honeywell Flour Mills Plc, with the former poised to file an appeal against the N72.2 billion damages awarded the later.
This is based on conviction within the bank that the judgment of the Federal High Court (FHC), which was delivered on Tuesday in Lagos by Hon Justice Mohammed Liman would not pass the test of the law.
Biztellers gathered from those who know at the lender that it “will vigorously challenge same, and remain confident that it can reverse this judgment at the higher courts.”
In a reaction to the judgment, they recounted on Wednesday that the instant suit was an action instituted in 2018 for the enforcement of the bank’s undertaking to damages which was commenced pursuant to its winding up petition and the Ex-Parte Orders which were granted in favour of the bank.
It said, “We challenged the action through a Notice of Preliminary Objection dated 16th October, 2018 whereby we challenged the jurisdiction of the Federal High Court, as (among other reasons), the action did not fall within the provisions of Section 251 (d) of the Constitution, being that the subject matter of the suit was for the claim of damages arising out of an Ex-Parte Order, as opposed to a banker-customer relationship.
“Trial was concluded in this matter since 9th March, 2021 and the parties adopted their final written addresses alongside our notice of preliminary objection on the 16th March, 2022, the court then adjourned the matter to 27th May, 2022 for judgment.
“While the court failed to deliver judgment on the said date, the registrar of the court promised to inform counsel whenever the judgement was ready.
“In the wake of the Supreme Court’s decision in the bank’s favour, in Suit No. SC/CV/210/2021 which was delivered on 27th January 2023, the bank further filed a motion on notice dated 9th March, 2023 to dismiss the suit on the grounds that same has become academic as a result of the judgment entered in favour of Ecobank wherein the Supreme Court held that Honeywell remained indebted to the bank.”
The sources also added that, “The court heard (the) motion dated 9th March, 2023 and adjourned to 23th June, 2023 for ruling on our two applications and also for delivery of judgment.
“The court consequently delivered the said ruling/judgment today July 18 via a virtual proceeding at about 4pm. In its judgment, the court dismissed the two applications we filed, holding that it has jurisdiction to entertain the suit and also that the suit had not become academic.”
Ecobank maintained that in reaching its judgment, “the court ignored/refused (among others): Submissions showing that the Ex-Parte Orders were discharged on points of law and not that it was frivolously obtained by the bank; that the Ex-Parte Order lasted for less than two weeks, contrary to the claim of Honeywell which was said to have covered the period of three years; that the documents presented by Honeywell particularly the annual returns did not show the alleged damage, hence same was indeed non-existent;
“That documents from various other banks who were served with the ex-parte order showed that the Honeywell companies were indeed highly indebted to them, hence there was no way the Ex-Parte Orders would have frozen funds in the said banks; and more importantly, the court refused all the objections regarding the documents maliciously prepared by Honeywell for the sole purpose of instituting the suit and claiming unjustifiable sums from the bank.”
The lender pointed out that it is a member of the Ecobank Group, the Pan-African Bank which is proudly and fully committed to transparency in all the countries where it operates, and abide by laws and regulations.
It therefore, expressed the desire that the matter should be conclusively determined in line with the applicable judicial process.
In a sharp turn of events, the Nigerian Naira took a significant tumble on Tuesday, plunging to N1,416.57 against the US dollar at the official market.
This staggering drop of N62.36 from the previous trading day represents a 4.60 percent loss, sparking concerns among investors and analysts alike.
Data from the FMDQ Exchange, overseeing the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed this unsettling trend.
Despite the currency’s downward spiral, trading activity surged, with the daily turnover soaring to $160.77 million, compared to Monday’s $84.83 million.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira’s performance remained volatile, trading between N1,445 and N1,301 against the dollar, underscoring the currency’s precarious position in the market.
The management of Dangote Cement Plc., Ibese Plant has assured that it would continue to complement the efforts of the Ogun State Government in the development of its host communities through capacity building for the people, especially the youths.
In a statement, the company declared its commitment to development for the prosperity of the people and host communities for which it is placing a premium on the developmental needs of the communities and empowerment of their indigenes.
During a capacity development workshop for Host Community Representatives, General Manager, Human Asset Management/Admin, Aina Olugbenga, said, Dangote Cement remained committed to implementing value-adding empowerment programs to uplift the people and develop the host communities.
The workshop themed: “Team Building, Inclusivity and Stewardship, a panacea to effective Community Representatives” according to him, was to equip the Community reps with the right skills to offer quality representation for their people. He stated: this capacity building workshop is aimed at developing and strengthening the skills, instincts, and abilities of the communities through their representatives adapt and thrive in a fast-changing world.
Olugbenga noted that the workshop is part of the management’s strategy to improve relationships with the host communities and urged the participants to leverage the knowledge acquired from the workshop to improve service delivery to their people and the Cement plant.
According to him, Dangote Cement, Ibese Plant is committed to building the capacity of the people and institutions in the communities by identifying skill gaps and partnering to up their skills for economic prosperity. This, he stated, was in anticipation that other stakeholders will continue to play their part by partnering and supporting the Company to ensure peaceful co-existence and shared prosperity for all.
Said he, “Apart from reciprocating the good gesture of Dangote Cement by ensuring peace at all times and keeping an open and trusting mind towards the organization, we also desire from our community leaders and representatives who are present here, the ownership of all Social Investment programme, be it training or infrastructure because they are meant for the betterment of our people.”
On behalf of the Community Representatives, Hon. Dayo Ogunyinka thanked the Dangote Cement management for the workshop while assuring continued commitment to effective, efficient and selfless discharge of their roles and responsibilities to their various communities and the Plant.
The Nigeria Deposit Insurance Corporation (NDIC) has announced revisions to the Maximum Deposit Insurance Coverage for banks operating within the country.
NDIC’s Managing Director, Bello Hassan, disclosed the updated coverage benchmarks during a media briefing in Abuja on Thursday.
The coverage for Deposit Money Banks has been increased from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ pass-through from N500,000 to N5 million per subscriber.
Hassan underscored that the objective of the update is to enhance depositor safety, foster public trust, promote the inclusivity of financial services, and ensure the overall stability of the financial sector.
More to follow.. . .. .
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