Features  |  Law  

Court fixes Oct. 10 to hear NDIC’s suit against firm

By Joseph Onyekwere   |   28 June 2016   |   1:10 am

courtA Federal High Court, Lagos has fixed October 10 for the hearing of the case brought against Suffolk Petroleum Services Limited and the defunct Fortune Bank by the Nigerian Deposit Insurance Corporation (NDIC).

In 2006, the Central Bank of Nigeria (CBN) revoked the license of the defunct Fortune Bank. Following the revocation, the NDIC filed a petition to wind up its affairs.

Both Suffolk Petroleum Services Ltd and the defunct Fortune Bank were allegedly indebted to the tune of N17 billion, being the outstanding balance on the principal loan and accrued interest.

The debt is said to constitute 90% of the bank’s loan asset at the closure of the bank.

Soffolk had filed an action against the bank at the Federal High Court, Port Harcourt, but allegedly failed to diligently prosecute the matter for nine years before three judges.

NDIC consequently filed the debt recovery action under the Failed Banks Act. It also filed an exparte application for interim injunction, restraining the respondent, their privies and agents from aligning or alienating any property belonging to the respondents .

Following the order of the court, NDIC served the respondent the motion on notice for interlocutory injunction. All the parties were in court before Justice Mojisola Olateregun-Ishola, who frowned at lack of diligent prosecution of the matter by the defendant and awarded a cost of N250,000 in favour of NDIC.

The judge subsequently fixed October 10, for trial.




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