Court adjourns Brightwaters’ suit seeking to wind up firm over $20m judgment debt

Justice Akintayo Aluko of the Federal High Court, Lagos, yesterday, adjourned till June 15, 2023, a motion seeking to advertise the winding up of an oil firm, Eroton Exploration & Production Company Limited, for its alleged inability to pay Brightwaters Energy Limited a judgment debt of $20 million.

The judge fixed the date, following a winding up application by the petitioner, Brightwaters Energy Limited, through its counsel, Olu Aju, who informed the court that the application was ripe for hearing.

The petitioner, in its motion on notice of March 21, 2023 is seeking a single relief.

“An order granting leave to the petitioner, Brightwaters Energy Limited, to advertise the winding up petition herein in the Federal Government Official Gazette, one national daily newspaper and other newspapers circulating in Lagos State, where the registered office and principal place of business of the respondent is situated or in such other newspaper(s) as the court may direct.”

The grounds for the relief are that “the respondent is insolvent, has insufficient assets to meet its liabilities and has failed to liquidate indebtedness to the petitioner, which arose out of an admitted judgment debt, which Eroton consented to through a terms of settlement and which they have refused to pay more than one year after the judgment was entered into by court.”

“The 21 days statutory demand notice within the meaning of Section 572 (1) of Companies and Allied Matters Act 2020 has since been issued to the respondent and same has elapsed.

“Notwithstanding the statutory demand notice within the meaning of Section 572 (1) of Companies and Allied Matters Act, 2020, the respondent has refused, failed and/or neglected to defray the debts owed to the petitioner.

“It is in the public interest that the advertisement of the winding up petition be made.” But the respondent’s counsel, Ugochukwu Okocha, sought an adjournment on the ground that his principal, Wale Akoni, was keen to argue the case personally.

The respondent has also filed a preliminary objection dated May 3, seeking an order dismissing/striking out the instant petition for lack of jurisdiction.

It said it sought the dismissal on the ground, among others, that “the petitioner/respondent, in filing a verifying affidavit alongside its petition, on same date, robbed this court of jurisdiction to hear the instant petition.”

Countering the preliminary objection, Brightwaters’ counsel argued that there was no provision of the winding up proceedings rules that robbed the court of its jurisdiction to hear the petition simply because an affidavit was filed alongside the petition, more so when the debt owed was not disputed and when the company was currently insolvent.

He, therefore, prayed the court to dismiss the preliminary objection and grant the application to advertise the petition “to allow any other creditor of the Eroton to appear at the hearing of the winding up petition since Eroton has no credible defence to the action.”
Justice Aluko adjourned till June 15 for hearing of the motion to advertise the winding up of the firm.