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Bank takes over Obat Oil’s depot over alleged debt

By Joseph Onyekwere
12 November 2016   |   1:13 am
Skye Bank Plc yesterday took over Obat Oil and Petroleum Limited’s depot at Oba F.E.O. Akinruntan Close, Beachland Estate, Apapa, Lagos over an alleged N2.1billion debt ...
Skye Bank

Skye Bank

Skye Bank Plc yesterday took over Obat Oil and Petroleum Limited’s depot at Oba F.E.O. Akinruntan Close, Beachland Estate, Apapa, Lagos over an alleged N2.1billion debt, following an order of the ‎Federal High Court in Lagos.

The bank had sought the enforcement of an arbitral award dated August 7, last year, which it won against the oil firm.

As a result, the trial Judge, Justice Jude Dagat, issued an order directing the Inspector General of Police, Assistant Inspector General of Police, Lagos Commissioner of Police, as well as the court’s Deputy Sheriff to assist in the enforcement of the order.

As a result, Obat Oil and Petroleum’s depot was sealed up yesterday, pending liquidation of the debt.

The bank had sought to recover a loan debt of N2, 142,462,572.26 owed it by Obat Oil and Petroleum and guaranteed by Oba Frederick Eniti Akinruntan.

The bank further sought to recover 15 per cent interest on the amount from April 2014 till the liquidation of the debt.

The case was taken before an arbitrator, Aare Afe Babalola (SAN), during which Obat Oil and Oba Akinruntan appealed for concessions and waivers on the amount of accrued interest, fees and commissions.

After the arbitration, the Arbitrator held that it would be fair and equitable to award N1, 406,944,352.76 to the claimant, which represents the amount the respondents admitted as being the outstanding balance as at March 31, 2014.

Babalola also awarded 10 per cent interest yearly on the N1.4billion from the April 1l, 2014 till final liquidation of the amount.

The bank, however, alleged that Obat Oil and Oba Akinruntan failed to comply with the Arbitration Award and applied to the court to order the award’s enforcement.