N1.015bn Judgement: Appeal Court Upholds Order Freezing AMCON Funds in 24 Banks

Wale Igbintade

The Court of Appeal, Lagos Division has affirmed the order of a federal high court in Lagos, freezing account of the Asset Management Corporation (AMCON) in the custody of 24 commercial banks operating in Nigeria over alleged N1.015 billion debt owed a Senior Advocate of Nigeria, Chief Anthony Ajibola Aribisala.

The appellate court in its lead judgement delivered by Justice Mohammed Mustapha held that the lower court lacked jurisdiction to set aside the order freezing AMCON’s bank accounts.

Other members of the panel, Justice Abdullahi Mahmud Bayero, and Justice Paul Ahmed Bassi aligned themselves with the lead judgement.

The appeal is against the ruling of Justice Tijjani Ringim of the Federal High Court sitting in Lagos, which set aside the order attaching funds belonging to the Asset Management Corporation (AMCON) in the custody of 24 commercial banks operating in Nigeria over the alleged N1.015 billion debt.

Justice Ringim in his ruling held that the Judgment Creditor (Aribisala), failed to sought for and obtained the consent of the Attorney-General of the Federation before the commencement of the Garnishee Proceedings against AMCON.

Dissatisfied, the appellant (Aribisala) by a Notice of Appeal filed on the 18th of November, 2022 prayed the court to allow the appeal and set aside the ruling of the lower court.

The appellant through his lawyer, Mr. Tayo Oyetibo SAN stated that the lower court was wrong when it held that the appellant’s application was predicated on section 19 (3) of the Asset Management Corporation of Nigeria Act, 2021 (as amended) and section 84 of the Sheriff and Civil Process Act, 2010, which require the consent of the Attorney General of the Federation before the Judgment in issue is enforced against the Judgment Debtor (AMCON).

He submitted that by section 6(6) (b) of the 1999 Constitution (as amended), the judicial powers vested in the Federal High Court shall extend to all matters between persons or between government or authority and any person in Nigeria and to all actions and proceedings relating thereto for the determination of any questions as to the Civil right and obligations of the person

Resolving the matter, Justice Mohammed Mustapha in his lead judgement held that the lower court lacked jurisdiction to entertain AMCON’s application seeking setting aside of the garnishee order nisi made on the 4th November, 2022, when the respondent’s letter dated 11th of November, 2022 seeking the transfer of the suit to another judge was not filed in the registry of the court.

The court held “It goes without saying therefore, that the issue of jurisdiction can never be overemphasized. The defect in the jurisdiction of the lower court can be easily situated within the two conditions stated in the celebrated case of Madukolu V. Nkemdilim (1962) 2 NSCC page 374; as (a) a feature in the case, which ought to have prevented the court from exercising jurisdiction, and (b) the fulfilment of a condition precedent to the exercise of jurisdiction.

“Now in this case, even though the document was purportedly acted by the Deputy Chief Registrar, (DCR), and the administrative judge, there is nothing to show that it was duly filed, by payment of the requisite fees.

“The payment of the requisite fees therefore is to validate the filing of the process presented and enable the registry of court carry out all other administrative duties in respect thereof.”

“The payment of fees, which learned counsel for the respondent sought to downplay is vital in every sense of the word, no less vital than any precondition, because it is what validates the process as a legal document capable of being acted upon. Once the necessary fee is not paid, the document becomes a worthless piece of paper, legally.

“The resort to order 51 Rule 1 of the rules of the lower court cannot rescue the respondent’s case from the abyss, because failure to pay fees cannot by any stretch of imagination be termed an irregularity, of the sort.

“The position at law is that when the requisite filing fees have not been paid Pursuant to the filing of a Court process, the Court has no jurisdiction to look at or to take action on the process and the matter ends there. Payment of the requisite filing fees is a pre-condition to the validity of any process filed in Court. Unless the precondition is satisfied, the Court will lack the jurisdiction to entertain the process, the prescribed filing fees of which, has not been paid.”

“The administrative judge ought not to have acted on the respondent’s letter, in the circumstances, because it was not a legal document upon which the reassignment of the case could have been founded. The reassignment of the case to Justice Ringim as a consequence, is a nullity.

“Having found the lower court lacked jurisdiction to have set aside the order nisi, I see neither need nor necessity to proceed to determine the other mundane issues in the absence of jurisdiction. The appeal succeeds per force Judgment of the Federal High court, Lagos division, in suit No. FHC/L/NRJ/9/22 delivered on the 18th November 2022 is hereby set aside”.