Firm Loses Bid To Enforce $15b Judgment Against CBN, Union Bank, Others

The Federal High Court in Lagos has dismissed an application by Petro Union Oil and Gas Company Limited to enforce a £2.550 billion judgment against the Central Bank of Nigeria (CBN), Union Bank, the Ministry of Finance and the Attorney-General of the Federation (AGF).

Petro Union and its officials sought to enforce a March 11, 2014 judgment while appeals by Union Bank, CBN and the AGF were pending at the appellate courts.

Together with interest, the judgment Petro Union tried to enforce amounts to over $15 billion.

Last June 18, Petro Union had approached the Federal High Court through a motion ex parte seeking an order of interim injunction restraining Union Bank from accepting or offering for sale its assets in any manner pending the determination of its motion on notice.

It sought an order directing maintenance of status quo and suspending all actions, proceedings and processes relating to the intended sale of Union Bank’s assets pending the hearing and determination of the motion on notice already filed in the suit of which the court granted the motion ex parte.

Union Bank, through its lawyers, Olaniwun Ajayi LP, applied to set aside the ex-parte order and opposed the motion on notice asking the court to make the interim order permanent.

Union Bank argued that a litigant cannot prevent a shareholder of a company with which it is involved in litigation from selling its shares.

The bank’s lawyers further argued that an appeal and an application for stay of execution against the judgment sought to be enforced were pending at the Supreme Court.

They added that a case of fraud and forgery was pending against Petro Union and its directors at the Federal High Court.

Justice Daniel Osiagor referred to a Bloomberg publication, which read in part: “Atlas Mara Limited, the London Stock Exchange-listed pan-African banking group started by Mr. Bob Diamond has received a number of approaches for its 49.97 per cent holding in Lagos-based Union Bank of Nigeria.”

He held that the quoted paragraph shows that it is Atlas Mara Limited that has received offers for the sale of its shares in Union Bank.