Court Adjourns Ruling on Application Seeking to Stop Sale of Ibadan Disco

Wale Igbintade

Justice Chukwujekwu Aneke of the Federal High Court sitting in Lagos, yesterday adjourned till December 8, 2022, ruling on an application filed by Integrated Energy Distribution and Marketing Company Limited (IEDMCL) asking the court to restrain the Asset Management Company of Nigeria (AMCON) from selling the Ibadan Electricity Distribution Company (IBEDC) until the substantive suit before the court is determined.

Moving the application for the interlocutory injunction, Counsel to IEDMCL, Mr. Dele Adesina, told the court that the sole aim of the application was to preserve the matter until the substantive suit was determined so as not to foist a fait accompli on the court.

Adesina submitted that parties were before the court on October 24, 2022, wherein parties informed the court that they were still exploring amicable settlement of the matter.

He, however added that while parties were in court and also exploring move for settlement, the plaintiff (AMCON) made a publication in the Leadership newspapers advertising move to sell the Ibadan Electricity Distribution Company.

He urged the court to grant an order to the effect that nothing should be done as regards the sale or dissipation of the asset of Ibadan Disco until the final determination of the substantive suit which was instituted by AMCON through the Receiver Manager nominee.

In his reply to the application, Counsel to AMCON, Mr. Kunle Ogunba, accused IEDMCL of trying to hold the hand of AMCON from collecting its money from the applicant.

He added that AMCON was not interested in the sale of Ibadan Disco, but to divest its shares from the company.

 He stated that it was the Central Bank of Nigeria and the Bureau of Public Enterprises that asked the Receiver Manager to do.

Ogunba further stated that the applicant did not file a reply to their originating motion and consequently did not have a defense against the Originating Motion.

But in his reply on point of law, Adesina said Ogunba did not serve the respondent with the originating summons, adding that the respondent only got to know about it by searching the court file and obtained a Certified True Copy to which he later filed counter affidavit in opposition to the Originating summons.

He further argued that out of the $162 million borrowed to acquire the Ibadan Electricity Distribution Company, and Yola Electricity Distribution Company, the applicant had paid $122 million, leaving a balance of $38 million apart from the accrued interest.

He stated that the applicant was also claiming the sum of $97 million in their counter claim as additional payment due from the Federal Government on the Yola Disco.

He then prayed the court to grant the motion for interlocutory injunction to preserve the Res pending the final determination of the suit.

But, Justice Aneke asked both counsel whether any party that had submitted to the jurisdiction of the court could take steps (to sell).

Justice Aneke after listening to counsel to both parties adjourned ruling on the interlocutory injunction till December 8, 2022.