A Federal High Court in Port Harcourt, Rivers State has dismissed the suit filed by First Bank Nigeria Ltd against General Hydrocarbons Limited (GHL). 

Justice E.A Obile dismissed the entire suit on the grounds that the court lacked the jurisdiction to entertain the case, upholding the arguments of counsel for 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 filed by FBN for being an abuse of court process and a breach of the orders of Justice Allagoa issued on 12th December 2024 in Suit No FHC/L/CS/1953/2024.

The court held that the 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 J. 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 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 J. 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. 

First Bank files appeal

Following the Federal High Court ruling, the First Bank has filed an application saying the matter is not a maritime claim, rather, a simple case of debt recovery. 

This is despite the fact that the court order sought is to prevent further fraudulent sale of crude on the FPSO and that the arrest order against the cargo expired by the effluxion of time being 14 days because it was ex parte in nature.  

Aggrieved by the decision, First Bank lodged an appeal against the decision of the Federal High Court and an application for an injunction of the court against GHL, pending the determination of the appeal. 

The bank said “While First Bank has great respect for the courts, it strongly disagrees with the ruling, which, in our view, constitutes a miscarriage of justice. 

“First Bank remains committed to protecting and securing the interest of its members and will relentlessly pursue justice against mischievous debtors seeking to use the machinery of the law to perpetuate mischief and evade their responsibility to offset outstanding obligations.”