Fuel Supplier Wants Court to Wind Up Primero, BRT Operator over Alleged Debt

Wale Igbintade

An indigenous petroleum company, Petrocam Trading Nigeria Limited, has applied to a Federal High Court in Lagos for the winding up of Primero Transport Service Limited, the operator of Bus Rapid Transport (BRT) over an alleged N63.466 million.

The petitioner, (Petrocam), in a suit, marked FHC/L/CP/1702/20, brought before the court, pursuant to Order 19, Rule 1, of the Company Winding- Up Rules 2001, was asking for the leave of the court to advertise the Primero’s winding-up petition in the Gazette and in Thisday Newspaper or any other widely circulating newspaper.

The petitioner accused Primero of continued failure to pay the debt of N63. 466 million.
In its petition, an affidavit in support of the petition deposed to by its Financial Manager, Mr. Taiwo Abiodun, the petitioner stated that sometime between January 2019 and January 2020, upon the request of the respondent, the petitioner supplied automated gas oil, lubricant oil, and gear oil worth the sum of N174. 046 million.

He stated that the supply was made on credit on the agreement that the respondent would pay N10 million as advance payment before the delivery and balance payment within 30 days after the invoice date.
He stated that Petrocam supplied the automated gas oil as agreed however, contrary to the agreement of the parties, the Primero failed to make payment to the petitioner.

He stated that when Primero Transport Service Limited failed to pay the money as agreed, several letters were written to Primero to liquidate its outstanding indebtedness in the sum of N113, 446, 000, and that upon receipt of the letters, the respondent only paid a paltry sum of N1,866,000, N28, 114,000 and N20 million, leaving the sum of N63.466 million, as outstanding.

He further stated that when it became glaring that the respondent did not want to pay the outstanding debt, the petitioner instituted a Suit marked FHC/L/CP/1239/20 against the respondent but it was discontinued due to a promise allegedly by the Respondent to pay the total outstanding sum by November 6, 2020, but the respondent has despite receipt of the said letter failed and or neglected to accede to same.

He stated that the respondent, having fully utilised the products and despite several and persistent demands by the petitioner, the respondent has willfully failed, refused, or neglected to repay the outstanding sums due to the petitioner.

He also stated that the respondent has not in any way whatsoever denied its indebtedness to the petitioner, but has become insolvent hence unable to pay its debt.

He stated that pursuant to Sections 571 (d) and 572 (a) of the Companies and Allied Matters Act 2020, Primero Transport Services Limited has shown its incapacity to pay its debts contrary to Section 571 and 572 of the Companies and Allied Matters Act 2020.

He, therefore, urged the court to declare that Primero Transport Services Limited be wound up under the provisions of the Companies and Allied Matters Act.

However, in its response, Primero Transport Services Limited urged the court to dismiss the winding-up suit on the ground that the debt referred to by the petitioner is a nonexistent debt.
In its counter-affidavit deposed by a legal practitioner, Mr. Mejulu Henry, averred that he is aware that the respondent since the commencement of their business relationship with the petitioner has always enjoyed a credit relationship because of the volumes/orders requested from the petitioner.

The deponent stated that the respondent is not indebted to the petitioner in the sum of N63. 466 million adding that between January 20 and 22, 2021, the respondent had made further payments of the sum of N64 million, which is far in excess of the debt claimed by the petitioner.

The deponent stated that the respondent is not insolvent and is in a position to pay its debts.
He stated that the petitioner’s aim was mainly to paralyse the respondent’s businesses and severely injure its reputation and corporate image.

Justice Lewis Allagoa has fixed February 25, for hearing of the substantive suit after counsel to both parties, informed the court on January 18, 2022, that all efforts to reach an amicable settlement of the debt had broken down.