A Federal High Court sitting in Lagos on on Tuesday has fixed the hearing of applications seeking to discharge the order of status quo against Asset management corporation of Nigeria (AMCON).
The suit filed by the Stanbic IBTC bank is challenging the powers of AMCON to re- price five years completed contract when the agreement only state one year.
At the resume of proceedings on Tuesday before justice Nicolas Oweibo sitting in Federal high court Lagos, counsel to Stanbic IBTC bank professor Fabian Ajogwu SAN, informed the court of the hearing notice slated the case for today for a motion filed by Asset Management Corporation of Nigeria AMCON
praying to discharge the order of status quo made by this court, but was not serve on the Stanbic IBTC bank.
In a Suit No. FHC/L/CS/1360/2019 filed by Stanbic IBTC Bank Plc (Stanbic) is praying the court to restrain Managing Director, Asset Management Corporation of Nigeria (AMCON) from reversing over five years completed contract.
Ajogwu, further informed the Court of the application filed by Stanbic to join Lonestar Drilling Nigeria Ltd., which the party sought to be joined is yet to be responded to. A counter affidavit had been filed by Stanbic in opposition to the preliminary objection of the defendant which was for argument.
Justice Oweibo had at the last adjourned date refused to discharge the order of maintenance status quo because the preliminary objections of AMCON was not served on the Stanbic IBTC bank.
He subsequently adjourned till today for the hearing of the application and ordered that Stanbic be served which have not been complied with .
Consequent upon this, the court further adjourned the matter to October 2, 2019 to allow Lonestar Drilling Nigeria Limited time to respond to the application seeking to join it as a Defendant to the suit whilst maintaining the order of status quo.
Stanbic had approached the court on the August 5, 2019, to determine whether AMCON can unilaterally re-price the Eligible Bank Asset (EBA) it purchased from Stanbic well over 5 years after. AMCON wanted to reprice the EBA after 5 years and claw back the sum of NGN5.7 Billion from Stanbic, claiming that the collaterals of Lonestar Drilling Nigeria Ltd. were overvalued.
Justice Oweibo of the Federal High Court, Lagos, had on August 22, 2019 refused to vacate the order to maintain status quo and directed that Stanbic be put on notice of the Preliminary Objection filed by the Defendant.
The Defendant through its Counsel, Mr. Chuba Agbu, SAN had urged the Court to set aside the order of status quo made on the 8th day of August, 2019.
The Court thereafter adjourned the matter to October 10, 2019.