Part of the conditions required for the settlement agreement was that the NNPCL should withdraw the legal action to facilitate the settlement.
The NNPCL’s counsel submitted that the discontinuance is in the interest of justice which promotes an efficient resolution without prolonged litigation.
The counsel also urged the court to strike out the suit without costs, citing the parties’ commitment to an amicable settlement.
The settlement agreement also includes clauses to align the interests of all parties involved and finalize the transaction.
The main suit, filed on July 5, 2022, was referred to arbitration by the court on August 3, 2022.
However, the parties, following recent interventions and negotiations resorted to an out-of – court settlement of the dispute.
In the motion, the NNPCL noted the court’s role in encouraging dispute resolution through arbitration, conciliation, and mediation, in line with Order 19 Rule 1 of the High Court’s rules.
According to the company, the discontinuance of the suit became necessary in order to complete the settlement process.
Furthermore, NNPCL noted that relisting of the discontinued suit in the event the parties fail to resolve the matter out of court, ensures that it retains the right to seek judicial recourse.