A Federal High Court sitting in Abuja today discharged the earlier order it granted freezing the accounts of Capital Oil and Gas limited.
A Federal High Court sitting in Abuja today discharged the earlier order it granted freezing the accounts of Capital Oil and Gas limited. While discharging the order the court sitting before Justice Abdul Kafarati held that AMCON did not have to stop the company from operation in the interest of the public.
The court also agreed with Chief Wole Olanipekun, SAN contentions to the effect that the duty of AMCON was to make sure that debtors pay their debt and not to push them out of business.
Justice Kafarati further faulted the method adopted by AMCON in securing the ex-Parte order freezing the accounts.
It would be recalled that the court had granted the Asset Management Corporation of Nigeria (AMCON) immediate possession of properties belonging to the company and its owner, Ifeanyi Ubah. The order freezing the company‘s properties was made under Sections 49 and 50 of AMCON Act.
The court relied on the inherent jurisdiction of the court and Section 6 (6) of the Constitution to vacate the order, stressing that it was not in doubt that the company‘s business was a going concern when the order was made.
“It is prudent to allow the defendant continue to operate the business and organise how to repay the debt,” the judge said.
Justice Kafarati held that AMCON should allow the business thrive as parties negotiate terms of settlement as stopping its operation might have adverse effect on the business.
.It would also be recalled that the court had earlier varied the order following an application by the company for an order to allow it pay its workers’ salaries.
Varying the order, Justice Abdul Kafarati said the defendants could withdraw 25 per cent of the amount disclosed by United Bank for Africa (UBA) in its affidavit. Ubah and Capital Oil are allegedly indebted to AMCON to the tune of N48.014 billion.