A Federal High Court judge, Justice Mohammed Liman has ordered the Stanbic IBTC Bank to return a petrol retail station, Ascon Oil Ltd to its owners.
The is coming barely one year after the Supreme Court ordered the bank to pay the N2.5 billion judgement sum awarded against it in a case between it and Longterm Global Capital Ltd and Mr. Patrick Akinkuotu.
The petrol station located at Block 36, Admiralty Way, Lekki Phase 1, Lagos, was reportedly sold by Stanbic IBTC Bank following a N1.7 billion loan it granted to the oil firm.
The Bank was said to have misled the court to make an exparte order in its favour, after which it hurriedly sold the petrol station valued at about N2.5billion to one of its customers, Rainoil Ltd at a paltry N1.53billion through its receiver/manager.
The court had on May 15, 2020, granted an ex-parte application brought by the Bank and ordered its (bank’s) receiver to take over the petrol station. The court also restrained the oil firm from interfering with the receiver’s activities pending the hearing of the motion on notice.
However, Ascon had approached the court to vacate the exparte order, on grounds among others, that the plaintiff Bank misled the court to grant the exparte application.
The oil firm faulted the exparte application and argued that in granting the order, it was denied the right to fair hearing as enshrined in the constitution.
Ascon claimed that the Bank had declined its requests for details of the expedited process of the transaction or evidence of any cash movement by which the petrol station was purportedly conveyed to Rainoil.
Justice Liman, after hearing the argument of the oil firm, agreed that the receiver erred in law when he brought the application by ex-parte and also agreed that Ascon should have been put on notice in line with extant laws.
Consequently, the Judge on July 24, 2020, set aside the exparte order, having discovered that the receiver erred in law to have brought his application by ex-parte thereby denying the other party right to fair hearing.
In its motion on notice, Ascon Oil had alleged that the Deed of Legal Mortgage dated June 5, 2019 through which Stanbic IBTC based its right or power to appoint a receiver or sell its property was forged.
“At the time the Deed of Legal Mortgage was purportedly executed, Ascon had by letters of 28th and 31st May 2018 protested the inclusion of the property for perfection. Thus, Ascon could not have executed a Deed of Legal Mortgage over the same property,” Saharan Reporters quoted document it obtained to have stated.
Ascon also alleged that forensic analysis of the purported Deed of Legal Mortgage revealed significant inconsistencies as two supposed signatures were materially different from their regular signatures and the signature page of the purported Deed of Legal Mortgage was a counterpart copy of previously executed versions.
The oil company claimed it had written to Stanbic IBTC through its Managing Director, Demola Shogunle, notifying it of its willingness to repay its outstanding indebtedness.
It was reported that prior to the extant issues, Ascon in May 2019 paid N500 million out of its outstanding indebtedness.
The oil firm also said it had approached the bank, requesting for a restructuring of the loan facility to enable it meet the escalating repayment obligations on it following fresh terms/conditions by the bank.
It also claimed it made an offer to the bank requesting to pay a lump sum of N500million on or before December 31, 2019, with outstanding balance spread over 24 months and suspension of further interest charges, which the bank declined.
The oil company revealed that it had paid about N800m out of the term loan as at the time of the application.
The Supreme Court had in July last year, dismissed an appeal by the Stanbic IBTC Bank Plc., against Longterm Global Capital Ltd and Mr. Patrick Akinkuotu, and ordered the bank to pay the N2.5billion judgement sum awarded against it by the court below.
The apex court held that “the application is frivolous, baseless, scandalous and contemptuous to be dismissed” and also awarded a cost of N500, 000 against the bank.