A Federal High Court sitting in Port Harcourt has dismissed the suit filed against General Hydrocarbons Limited (GHL) by First Bank of Nigeria (FBN).
Justice E.A. Obile dismissed the entire suit on the grounds that the court lacked the requisite jurisdiction to entertain the case, upholding the arguments of General Hydrocarbons Limited’s counsel, Dr. Biodun Layonu.
In dismissing the case, the court upheld GHL’s notice of preliminary objection challenging its jurisdiction to hear the suit. The court agreed with GHL’s submissions in the notice and dismissed FBN’s entire suit for being an abuse of court process and a breach of the orders issued by Justice Allagoa on December 12, 2024, in Suit No. FHC/L/CS/1953/2024.
The court held that First Bank conceded in paragraphs 18 and 19 of its counter-affidavit opposing the defendants’ notice of preliminary objection that the order made by Justice Allagoa restrained it from enforcing any receivables arising from the facility agreement between the parties.
The court further ruled that the plaintiff’s attempt to distinguish this suit from Suit No. FHC/L/CS/1953/2024 was untenable, as every subsequent agreement between the parties was based on the legally enforceable Memorandum of Understanding (MoU) between GHL and FBN, which FBN repeatedly breached.
Consequently, the court held that by filing this suit, First Bank sought to do precisely what Justice Allagoa had prohibited, making it a classic case of abuse of the court process. The suit was therefore dismissed. Additionally, the court upheld GHL’s argument that the ex parte orders issued on January 9, 2025, had lapsed by operation of law.
The ex parte orders, which were set aside, included an order to arrest and/or attach or place a lien on the entire cargo of crude oil onboard the Floating Production Storage and Offloading (FPSO) vessel, Tamara Tokoni. It also includes an order directing the Nigerian Navy, NUPRC, NIMASA, and the Harbour Master of the Nigerian Ports Authority to assist the Admiralty Marshal in enforcing the arrest order.
The court ruled that these orders had automatically lapsed due to the passage of time and were consequently nullified. This ruling clears the way for unhindered arbitration at the Lagos Court of Arbitration, where GHL is seeking hundreds of millions of dollars in damages from FBN for multiple breaches of its obligations.