Court strikes out AMCON’S N8.2 billion suit against bank

Justice Inyang Ekwo of the Federal High Court, Abuja has struck out a suit filed by the Asset Management Corporation of Nigeria (AMCON) against a new generation bank and two others.

In a suit marked FHC/ABJ/CS/343/2020, AMCON sued the bank, seeking an order of specific performance in its favour on the transfer of 278,072,587 units of shares used as collateral for loans granted by the bank to one of its customers, Rockson Engineering Limited.

In the suit filed by its counsel, J.Y Pam, AMCON further claimed an alternative relief of N8, 233,729,301.07.

However, in a counter affidavit filed by its counsel, Prof. Fabian Ajogwu (SAN), the bank and its Securities Limited, argued that certain conditions precedent had not been fulfilled by AMCON and that the said shares were indeed collateral for loans that it granted to its customer, Rockson Engineering Limited, which were unpaid.

The defendants also challenged the jurisdiction of the court to hear the matter on grounds amongst others, that same was an abuse of court process, given the pendency of two other appeals before the Court of Appeal, on the same subject matter.

Justice Ekwo struck out the suit on the grounds of lack of jurisdiction, as it is already a subject of appeal at the Court of Appeal in Abuja.

The judge agreed with the submissions of counsel to the defendants and held that the Federal High Court lacked the jurisdiction to hear the matter, as it amounted to an abuse of court process.