Alleged Indebtedness: Receiver Explains Sale of Algrain Foods’ Assets

Wale Igbintade

The Receiver, Mr. Ade Oyebanji (SAN), appointed jointly by First City Monument Bank (FCMB) and First Bank of Nigeria (FBN) Limited, has provided clarification regarding the sale of Algrain Foods Limited’s (AFL) assets over alleged indebtedness.

The clarification followed a petition to the Inspector General of Police (IG), by the counsel to AFL, Mr. Alloysious Ezenduka, which alleged that the assets were sold illegally.

However, Oyebanji, in a statement he issued on behalf of the two banks, clarified that AFL was a customer of FCMB and FBN and that both financial institutions appointed FCMB Trustees Limited as the trustee that would manage the facilities on their behalf. He said that the account of AFL became toxic in 2016 and the trustee appointed him (Ade Oyebanji, SAN), as the receiver over all assets and debenture as duly registered with the Corporate Affairs Commission, Abuja.

According to the statement, the receiver obtained protective interim order of possession in 2017 from the Federal High Court Lagos, in suit No: FHC/L/CS/06/2017.

But during the pendency of the suit, in 2020, AFL and its Director, Mr. Anthony Obidulu, sued the bank and the receiver before the Federal High Court, claiming among others that the receiver committed trespass and that the court should appoint independent auditors, and grant the sum of N20 billion against the bank in suit No: FHC/L/CS/1764/2020.

The receiver clarified further that the case of AFL, Anthony Obidulu and Mrs. Nkechi Obidulu Vs. CSL Trustees Limited (FCMB), First Bank of Nigeria Limited and Emmanuel Adeyeye Oyebanji was dismissed on October 24, 2021, as an abuse of court process by the Federal High Court.

Few days later, on November 3, 2021, the Federal High Court delivered judgment in the receivership case in favour of the bank and the receiver in suit No: FHC/L/CS/06/2017 between CSL Trustees Limited, First City Monument Bank Limited, and First Bank of Nigeria Limited Vs. AFL, and Anthony Obidulu.

The Federal High Court granted all the reliefs sought by the Trustees and the Bank as Follows:

“A declaration that Emmanuel Adeyeye Oyebanji being the receiver appointed by the 1st Applicant by virtue of the Deed of All Assets Debenture dated October 18, 2013 and the Supplemental Deed of All Assets Debenture dated February 1, 2016, is entitled to remain in possession, continue to manage, superintend and to sell the said property by virtue of the provisions of the said deeds and his deed of appointment dated November 2016 without interference, obstruction and / or hindrance in any manner from the Respondents, or their agents, servants and privies in accordance with section 393of CAMA.

“An order authorising and/or directing the receiver to retain possession of the respondents assets mortgaged to the 1st -3rd Applicants by virtue of the deed of all assets debenture dated October 18, 2013, and the Supplemental Deed of All Assets Debenture dated February 1, 2016 during the tenure of his appointment as receiver.

“Perpetual injunction restraining the respondents their servants, agents, privies, or any other person whatsoever from interfering with, obstructing, disturbing and/or frustrating the receiver from exercising the powers, duties and functions vested in him or performing his duties as receiver of the respondents assets mortgaged to the 1st – 3rd Applicants by virtue of the Deed of All Assets Debenture dated October 18, 2013, and the Supplemental Deed of All Assets Debenture dated February 1, 2016.

Oyebanji said that the judgment was a declaratory judgment, and that there was no appeal; no stay of execution filed by counsel to AFL until November 9, 2021,” he said.

He said that on November 7, 2021, in accordance with the judgment of the court authorising sale, the receiver exercised the power of sale in pursuant to the provision of CAMA Schedule II.

“The judgment was declaratory and took effect from the date of delivery. There was no notice of appeal and or stay of execution as at November 7, 2021, filed by defendant AFL against the declaratory judgment pronounced on November 3, 2021,” Oyebanji said.

He added that the Counsel to AFL, Mr. Alloysious Ezenduka, “failed, neglected and or deliberately refused to file its notice of appeal and stay of execution before the exercise of the power of sale as ordered by the Federal High Court. 

He said that AFL filed Notice of Appeal to the Court of Appeal dated November 9, and the matter is currently pending at the Appeal Court.

“AFL rather than wait for the outcome of the appeal has proceeded via the route of self-help by employing the services of law enforcement agents to deny the buyer the use of the property they bought legally and also to harass the receiver and the bank by dragging them to the law enforcement agents from time to time all in a bid to force them to yield to the pressure being mounted by them,” he said.

The senior advocate reiterated that “it is total fallacy and complete misinformation that the receiver has been stealing the assets of AFL but rather the assets were legally disposed of by virtue of the judgment and that “there is no judgment or order from the Court of Appeal reversing the judgment of the Federal High Court.”

According to him, all the allegations leveled against FCMB and the receiver before the police have been dismissed by the Federal High Court in the ruling dated October 24, 2021.

“Therefore, the petition to the Inspector General of Police is an unholy attempt to reverse the judgment of the court through the back door,” he said.