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Access Bank gets order to liquidate Negris over N2.7b debt

By on September 30, 2011

A FEDERAL High Court, Lagos on Tuesday granted an application by the Access Bank Plc, urging it to appoint a provisional liquidator for Negris Holding Limited one of the nation’s leading indigenous multidiscipline engineering services group providing specialized services to the oil and gas, energy and industrial sectors over alleged N2.7 billion debt owed the bank.

Trial judge, Justice Okon Efreti Abang made the order in his ruling on a motion dated February 17, 2011 and filed by Access Bank’s counsel, Kunle Ogunba (SAN).

In the motion, the bank asked the court for an order of a provisional liquidator for Negris following its inability to pay back the N2.7billion credit facility granted to the it by bank.

The interim liquidator, Ogunba argued was to protect the res; that are the course of action, pending the hearing of the winding up petition.

But the firm through its counsel O. A. Owolabi urged the court to refuse the application on the ground that the petitioner has not place sufficient grounds before the court to justify and sustain the discretional order.

The petitioner, the counsel argued has not place   sufficient material like, the name of the liquidator, capacity, competence or ability of the person to act as provisional liquidator of a company as big as Negris.

He further argued that there was no way, the court could grant the application sought without going into the substantive relieves sought by the bank.

He also submitted that section 21 of the winding up procedure rule made it mandatory that such an application can only be made after an advertisement had been made by the petitioner for the winding up of the company.

But Ogunba in response argued that it was within the discretion of the court to grant such application and that the respondent argument on section 21 was distorted and cannot be considered without Rule 19 (2(A), which gave 15 days for the advertisement before the hearing of the winding up petition.

The counsel submitted that granting the application would not affect the substance of the petition, as it was only a precautionary move so that the court will not be acting in vain at the long run.

In his ruling, Justice Abang granted the application on the ground that no date has been fixed yet for the petition and the mandatory 15 days established by the rule has not started running.

The judge, who adjourned till November 9, for the hearing of the winding up petition also, stated the order was a preventive one and which do not have anything to do with the substance of the petition except beyond mere deposition needed to grant the order

The court   had earlier rejected Negris moves to kill the winding -up process filed by the bank, through a preliminary objection challenging the jurisdiction of the court to hear the petition on the ground that on the objection borders on fact, which is premature on that stage.

Justice Abang also rejected Negris application to set aside an exparte order granted Access on the grounds that the court is satisfied that the order was properly made and that facts were not suppressed by counsel to the Access Bank.