For alleged breach of contract, Beulah Enterprises Technical Company has instituted a suit against Japaul Oil & Gas Maritime Service Plc before a Lagos High Court sitting in Igbosere.

The claimant (Beulah Enterprises Technical Company) in a suit delineated LD/1325CMW/2015 is praying for an order of court directing the defendant (Japaul Oil & Gas Maritime Service Plc) to pay N33, 949, 912 as the total indebtedness to the claimant.

The claimant in its statement of claim averred that sometimes in 2011 to 2013 acquired 100% interest in Iwopin Pulp and Paper Mill Company Ltd (herein after referred to as IPPC) under the Federal Government of Nigeria privatization scheme and took over all the assets of IPPC.

The claimant stated that the defendant entered hire agreements dated April 9 and September 1, 2001 and hired six vessels from IPPC, one tugboat named ‘PULPA 1 and 2 Barges name ‘NNPMC 5 and 6.’

“The claimant averred that, for a period of three years (from the year 2001 to 2004), the defendant failed to pay the agreed daily hire fees of N8, 000.00 for each tugboat and the sum of N6, 500.00 per barge as agreed despite the claimant’s demand for the liquidation of the sum as contained in its letter dated November 16, 2001. The defendant is hereby given notice to produce original copy of the aforesaid letter.

“The claimant averred that following the defendant’s continued failure and refusal to pay the outstanding indebtedness, the claimant by its letter dated June 23, 2003 requested the return of a set of its vessel, that is one tugboat and two barges from the defendant, but the defendant failed to comply with the claimant’s request.”

On June 16, 2004, the claimant invited the defendant to a meeting wherein defendant’s non-compliance with the terms of hire agreement were discussed.
The agreement reached at the meeting was endorsed by the Managing Director of defendant, Mr. A.P Jegede and the Deputy Managing Director of IPPC, Mr. Taiwo Olaye’.

Also, the claimant stated to have conducted investigation, alleged that: “the defendant had in the past used IPPC’s vessel to conduct illegal business of oil bunkering in contravention of ‘clause 3’ of the hire agreements. Also the barges (NNPMC 5 & 6 and IPPC 1 & 111) that the defendant claimed to have sunk as a result of old age were untrue as they had been sunk by the force of the Nigeria Navy for illegal oil bunkering trade and defendant abandoned the vessel to rot at its private jetty after profiting from their use.”

The claimant therefore demands that defendant to pay: the sum of N168, 181,912.00 being the outstanding indebtedness of hire agreement as at June 30, 2015; Interest on the sum of N168, 181, 912.00 at the rate of 15% per annum from June 30, 2015 until judgment and thereafter at the rate of 10% per annum until final liquidation of the judgment sum.

And the sum of N10 million being general damage for defendant breach of agreement and N251 million being cost of purchasing six new vessel and N500, 000.00 as cost of litigation.

However, the defendant, though represented in court is yet to file its statement of defense to the suit. Justice Olusola Williams therefore fixed February 16, 2016 for hearing.