Firm appeals verdict terminating joint venture deal
01 August 2023 |
3:23 am
Aviation Handling Services International Ltd. has appealed the Federal High Court judgment that terminated the joint venture between it and its Nigerian partners in AHS Aviation Handling Services Nig. Ltd, formerly known as Precision Aviation Handling Company of Nigeria ...
Aviation Handling Services International Ltd. has appealed the Federal High Court judgment that terminated the joint venture between it and its Nigerian partners in AHS Aviation Handling Services Nig. Ltd, formerly known as Precision Aviation Handling Company of Nigeria (PAHCOL), over illegality and abandonment of contract.
It asked the Court of Appeal for an order setting aside the judgment and the order of award of cost delivered on May 3, 2023. The 1st to 4th respondents in the suit, marked FHC/ABJ/CS/566/2021, are Precision Support Services Ltd, Merit Oil Ltd, Precision Aviation Handling Company of Nigeria (now AHS Aviation Handling Services Nig. Ltd) and Menzies Aviation (Africa) (Pty) Ltd.
The lower court had, in its judgment by Justice Obiora Atuegbu Egwuatu, held, among others, that the proposed joint venture was in gross violation of the 1999 Constitution and the Civil Aviation Act 2006. Egwuatu awarded damages of N2 million to the plaintiffs in the suit.
Dissatisfied, Aviation Handling Services International Ltd filed a motion on notice, dated July 14, 2023, at the Federal High Court, seeking an injunction pending appeal against the respondents.
It seeks “an order of injunction restraining the Plaintiffs/Respondents, their servants, agents, privies or otherwise howsoever called from taking any step towards or acting under or pursuant to the judgment of this court delivered on May 3, 2023, pending hearing and determination of the appeal.
“The company, in its notice of appeal of the same date, appealed the whole decision of the Federal High Court, dated May 3, 2023, except the part of the judgment which granted the preliminary objection of the 2nd defendant, Menzies Aviation (Africa) (Pty) Ltd., and struck out the name of the 2nd defendant from the suit.”
It made out eight grounds of appeal, including that the trial judge “erred in law”, when he held in the judgment that the clauses making English law the governing law and English court exclusive jurisdiction in resolution of disputes between the parties were capricious and unreasonable because the company is in Nigeria, the joint venture business or services to be rendered is in Nigeria pursuant to Nigerian laws and to be regulated by Nigerian laws; and therefore held the MoU, the Shareholders Agreement, and Share Acquisition Agreement were in gross violation of the Constitution and the Civil Aviation Act.
It further argued that the trial judge misdirected himself, when he held that the reasonable and inferable conclusion arising from abandonment of the daily management role and funding of the 3rd plaintiff, in accordance with the laws of Nigeria, is that they have abandoned and totally lost interest in the proposed joint venture; and thereby misconceived issues resulting in miscarriage of justice.
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