A Federal High Court, sitting in Lagos, has adjourned till
Wednesday to settle the issue of legal representation among
the lawyers involved in a suit filed by First Bank of Nigeria
Limited against the company of the late businessman, Alhaji
Abdul-Azeez Arisekola Alao’s Lister Oil Limited, to recover a
loan of N7.2 billion.
Different individuals have given different lawyers mandate to
represent Lister Oil Limited in the impending suit.
Meanwhile, the order granted by the court directing the
directors, shareholders and agents of Lister Oil Limited to
yield up possession and deliver to the receiver manager the
assets mortgaged by Lister Flour Mills to First bank Limited
still subsists until the issue of legal representation of the
defendants are resolved.
Joined as co-defendants in the suit are Lister Oil Limited,
Mrs. Khadijah Alao-Straub and Fatimoh Alao, while First Bank
Limited and Lister Flour Mills (Nigeria Limited) (in
receivership) are the plaintiffs.
The court presided over by Justice Saliu Saidu on 11 February,
granted an order that the defendants by themselves, the
directors, shareholders, agents, servants, privies and/or
employees of the second applicant in the suit, Lister Flour
Mills Nigeria Limited, and the first defendant, Lister Oil
Limited, are restrained in the interim from challenging,
interfering, with or otherwise obstructing or frustrating the
performance of the statutory duties of the receiver appointed
by First Bank Limited over the asset covered by the Deed of
Legal mortgage dated July 25, 2005, duly consented to by the
governor of Lagos state, and registered with the Corporate
Affairs Commission on November 23, 2005, and upstamped on
April 4, 2012, and September 2, 1013, respectively, pending the
hearing and determination of motion on notice.
Justice Saidu also ordered that the defendants, directors,
themselves, the directors, shareholders, agents, servants,
privies and/or employees of the second applicant in the suit,
Lister Flour Mills Nigeria Limited, and the first defendant,
Lister Oil Limited, however described are directed to yield up
possession and deliver to the Receiver the asset mortgaged by
the second plaintiff/applicant, Lister Flour Mills Limited, to
first plaintiff/applicant, First Bank Plc, being 21, Creek road,
Apapa, Lagos, more particularly described as Plot 1247, Block
“IW” LSPDC Layout, Apapa, Lagos, containing an area of
approximately 3.213 Acres of more, particularly delineated in
duly plan number L.E.D. B/S. D/40 of Apapa Town Planning
layout, and covered by the Deed of Legal Mortgage dated July
25, 2005, duly consented to the governor of Lagos state, and
registered with the Corporate Affairs Commission on November
23, 2005, presently in the custody and possession of the
defendants pending the hearing of motion on notice.
The plaintiffs, First Bank and a company in receivership Lister
Flour Mills Nigeria Limited, in their originating summons filed
before the court by their lawyer, Mr. Oluwakemi Balogun, SAN,
under the matter of the Company and Allied Matters Act Cap
C20 Laws of Federation of Nigeria, had demanded whether the
defendants can be perpetually restrained from disturbing and
obstructing the rights of the bank and the appointed receiver.
Consequently, the plaintiffs are seeking a declaration of the
court that the defendants lack rights to interfere with the
power and duties of the receiver duly appointed by the first
plaintiff, First Bank Plc on November 26, 2014, pursuant to the
said Deed, and that the receiver is entitled to exercise all
statutory powers and duties of receiver over the mortgaged
asset in accordance with the provisions of the said Deed of
Legal Mortgage and Companies and Allied Matters Acts Cap
C20 LFN without any interference, obstruction and/or
hindrance in any manner whatsoever by the defendants or any
persons acting under their authority or any person whether
shareholders, officers, agents, privies and/ or employees of the
second plaintiff, Lister Flour Mills Nigeria Limited.
They are also seeking a court declaration that the second
defendant, Mrs. Khadijah Alao-Straub, being the former
director of the second plaintiff, Lister Flour Mills, lacks the
right to challenge the receiver appointed by the first plaintiff,
Lister Oil company, over the asset.
According to an affidavit sworn to by relationship manager,
Debenture and Corporate Banking Group of First Bank Mr
Nurudeen Giwa, First bank sometime in January 2011 granted
Lister Flour Mills four different types of loan amounting to
N7.2 billion for the purpose of importation of factory
equipment.
The loans were later restructured several times but when the
facilities became due and due to the persistent failure of Lister
Flour Mill company to liquidate its indebtedness, Mr
Oluwakemi Balogun (SAN) was appointed as a receiver
manager over Lister Flour Mills mortgaged asset to realise
same in line with the deed of the Legal Mortgage executed by
the company in favour of First bank.
On two occasions when the case was mentioned the matter
could not go on due to multiple legal representation for Lister
Oil Limited and Fatimo Alao.
Consequently the court had to adjourn till Wednesday for the
issue of the legal representation to be sorted out.