Justice Daniel Osiagor of the Federal High Court, Lagos, has varied the terms of a Mareva injunction in the ongoing dispute between Ecobank Nigeria Plc and Kam Industries Nigeria Limited over an alleged $9.5 million credit facility.

In a recent ruling, the court granted Kam Industries a one-time release of N500 million to pay outstanding salaries to over 4,000 employees nationwide.

The earlier Mareva injunction, granted on October 7, 2024, had frozen assets across 25 banks and financial institutions linked to the defendants, pending the determination of the main suit (FHC/L/CS/1748/2024).

Other defendants include Dr. Kamoru Yusuf and Kamsteel Integrated Company.

The variation followed a Motion on Notice filed by Chief Afolabi Fashanu (SAN), lead counsel for Kam Industries, who asked the court to temporarily lift the ex parte order to allow limited access to funds.

The application was brought under Orders 26 Rule 10(1)–(3) and 28 Rule 1(1)(3) of the Federal High Court (Civil Procedure) Rules 2019, as well as Sections 6(6) and 36 of the 1999 Constitution (as amended), and the court’s inherent jurisdiction.

Granting the request, Justice Osiagor held that the court had the authority to entertain the application and emphasised that the relief was necessary to keep the company operational, preserve jobs, and protect injured workers.

He also encouraged both parties to seek an amicable settlement and report back to the court.

Earlier, Ecobank’s counsel, Mr. Kemi Balogun (SAN), informed the court that a Notice of Appeal and stay of proceedings had been filed, challenging the court’s jurisdiction.

He argued that since the court had already heard the Originating Summons and adjourned to June 4, 2025, for ruling, the case could not be relisted without an application for abridgment of time.

In response, Chief Fashanu maintained that the court had inherent jurisdiction to hear the motion and noted that the hearing notice issued was standard practice in Federal High Courts.

In a bench ruling, Justice Osiagor granted the application, permitting the N500 million disbursement.

Kam Industries supported the application with a 28-paragraph affidavit deposed to by Olumide Abdulkareem, Executive Director of Global Business Development and Legal.

The affidavit pleaded for judicial discretion to prevent the company’s collapse and protect employee welfare.

Citing the Doctrine of Necessity, the deponent argued that the injunction had crippled the company’s ability to pay salaries, buy gas for production, and settle electricity bills—issues that had triggered threats of strike and disconnection from utility providers.

He warned that without urgent relief, the company’s operations and those of its affiliated industries faced imminent collapse.

Graciously, the court acceded to his request and varied the order.