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Tejuosho Market: Court strikes out contempt charge against FirstBank

By BusinessNews Staff on May 30, 2014

The Federal High Court in Lagos yesterday struck out contempt proceedings initiated by Access Bank Plc against First Bank of Nigeria Limited.

Justice Okon Abang held that the Form 48 and Form 49 (notices of disobedience of a court order) were not properly served on FirstBank.
According to the judge, the court’s leave was not obtained first before the processes were served on the alleged contemnors.

“For the plaintiff to commence a valid contempt proceedings, it requires the leave of court.
“The plaintiff did not obtain leave of court before serving the alleged contemnors. These processes are, therefore, incompetent,” Justice Abang held.
Stomberg Engineering Company Limited (the defendant) and its owner Mr Dolapo Atinmo, allegedly entered into separate funding agreements with Access Bank and First Bank over the Tejuosho Ultra-modern market.

In their bid to recover their money, both banks filed separate suits against Stomberg Engineering and Atinmo.
Access Bank’s lawyer Mr Kunle Ogunba (SAN), who was appointed as the the market’s Receiver/Manager, initiated contempt proceedings against First Bank officials, alleging that they flouted the court’s order by obstructing the performance of his functions.
The court had empowered Ogunba to take over the assets of Stomberg in respect of the market, and restrained the defendant from interfering with the Receiver/Manager removing its funds in the Alausa Branch of First Bank.

Justice Abang added that Access bank did not specify which First Bank officials disobeyed the court’s order.
“The names of the alleged contemnors must be mentioned, not just their designations as at the time the order was made.
“This is so because if the person who disobeys the order has been transfered or retired, the new occupier of the office cannot be held liable for an offence committed by his predecessor,” the judge added.
First Bank’s lawyer, Mr Kemi Balogun filed an application seeking to be joined as a defendant in the suit by Access Bank against Stomberg before Justice Abang.
In response to the contempt charge, First Bank accused Access Bank of misleading the court and feeding it with half truth.

“The facts deposed to in the affidavit in support of FORM 49 are half-truth and same was intentionally averred and initiated by the plaintiff (Access Bank) to mislead the honourable court and embarrass the Managing Director the said bank,” one of First Bank’s affidavits opposing the contempt charge reads in part.
Justice Abang adjourned till June 16 for hearing of First Bank’s application to be joined in the suit, and Access Bank’s motion for interlocutory injunction against the defendant.

[This Day]

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