Court Dismisses Wind-up Proceedings against Aiteo

Awards N8m against petitioner

Davidson Iriekpen

A Federal High Court in Lagos has dismissed a wind-up suit against an indigenous oil company, Aiteo Eastern Exploration and Production Company Limited (AEEPC).

The court presided over by Justice Oluremi Oguntoyinbo, dismissed the wind-up suit, following an application made by AEEPC’s counsel, Mr. Emeka Ozoani (SAN), to dismiss the application following a request to withdraw the application made by A. A. Adekeye, lawyer to Charlietam International Services Limited (CISL), the petitioner in the suit.

The petitioner, CISL in a suit filed through its solicitors, Anthony Enyindah, Victor Okezie and Dr Dickson Omukoro of Ntephe Smith & Wills Chamber, had urged the court to wind-up AEEPC over an alleged inability to pay N259,068,753 debt.

The petitioner, a Rivers State-based oil servicing company, in the suit numbered FHC/LA/CS/1818/2019, accused Aiteo of failing to pay the money for services rendered to the respondent between December 2017 and March 2019.

The petitioner had told the court that the application to wind-up the company was on the grounds of insolvency, pursuant to sections 408 and 409(a) of the Company and Allied Matters Act.

At the resumed hearing of the matter yesterday, Adekeye, who claimed to be representing the petitioner, informed the court that she has an undated application, seeking to discontinue the petition against AEEPC.

She said: “We have a notice of discontinuance, we have served the respondents and it’s aware of the application”.

In adopting the notice of discontinuance, Adekeye told the court that it was based on the Company and Allied Matters Act.

Responding, AEEPC’s counsel, Ozoani who led Mr. Joseph I. Nwatu and Mrs. Mmesoma Unaeze, while admitting being served with the application, told the court that he had been served with the notice of discontinuance while in court.

He, however, told the court that there was the need for parties to address the court on the petitioner’s application as the issues had been joined on the wind-up application.

Ozoani also told the court that the petitioner had gone to press, especially on October 19, 2019, without a court order, a development he said had caused apprehension to the clients of the respondent and has caused his client ‘injurious falsehood’.

Ozoani while citing the authority of Air Via Limited Vs Oriental Airlines Ltd (2004) 9 NWLR (Part 878) 298, at 342 B-C to support his arguments that winding up petition cannot be used to established a disputed debt.

He also urged the court to dismiss the petition on the authority of Abayomi Babatunde Vs Pan Atlantic Shipping and Transport Agencies & Ors (2007) 13 NWLR (pt. 1050) 113.

He also asked for cost of N 10 million against the petitioner for injuring the reputation and corporate image of Aiteo by jumping the rules of court and publishing the petition on October 19, 2019 without the leave of the court.

Delivering ruling on the parties’ submissions, Justice Oguntoyinbo held: “I have listened to the petitioner’s counsel who prayed the court to withdraw the petition after she had adopted it.

“The undated process is defective, The learned silk have asked that the petition be dismissed. Parties cannot asked for anything else once the issues are joined.

“The petitioner went against the rule of the court by having the petition published in a newspaper when the matter has not been heard by the court.

The petitioner did not take necessary caution.

“It is hereby ordered that the petition be dismissed and the cost of N8 million awarded in favour of respondent against the petitioner.”

Justice Oguntoyinbo also congratulated Ozoani for attaining the rank of senior advocate, since he was appearing before him for the first time since he was conferred.