Lukman Olabiyi, Lagos
Justice Olufemi Oguntoyinbo of the Federal High Court, Lagos, has dismissed a wind-up suit against domestic oil company, Aiteo Eastern Exploration and Production Company Limited (AEEPC).
The court not only dismissed the suit but also awarded cost of N8 million against the applicant, Charlietam International Services Limited (CISL).
The dismissal order was a result of application filed by the CISL’s lawyer, A A Adekeye seeking to withdraw the suit, but AEEPC’s counsel Mr Emeka Ozoani opposed application and urged the court to dismiss the suit instead of granting the applicant’s application.
CISL in the suit had urged the court to wind-up AEEPC over its alleged inability to pay debts in the sum of N259,068,753.00 million
The applicant, a Rivers State based oil servicing company, had accused Aiteo of failing to pay the money for services rendered to it between December 2017 and March 2019.
CISL had told the court that the suit seeking for winding-up the company was on grounds of insolvency, pursuant to Sections 408 and 409(a) of the Company and Allied Matters Act.
Before dismissing the suit and awarding cost against CISL, the applicant’s counsel, Adekeye, informed the court that she has an undated application seeking to discontinue the suit against AEEPC.
Responding, AEEPC’s counsel Ozoani, while admitting being served with the application, told the court that he was served with the notice of discontinuance in court.
Ozoani further told the court that the petitioner had gone to press, citing the October 19, 2019 edition of ThisDay newspaper, without court order, a development, he said, that had caused apprehension to the clients of the respondent, citing ‘injurious falsehood’.
Ozoani argued that a winding-up suit could not be used to establish a disputed debt.
He urged the court to dismiss the suit and also asked for cost of N 10 million against CISL for injuring the reputation and corporate image of Aiteo by jumping the rules of court and publishing the suit on October 19, 2019 without the leave of the court.
Delivering ruling on the parties submissions, Justice Oguntoyinbo held that: “I have listened to the applicant’s counsel who prayed the court to withdraw the suit after she had adopted its application.
“The undated process is defective, The learned Silk have asked that the suit be dismissed. Parties cannot asked for anything else once issue has been joined.
“The petitioner went against the rule of the court by having the petition published in ThisDay Newspaper when the matter has not be heard by the court. The petitioner did not take necessary caution.
“I hereby dismiss the suit with the cost of N8 million awarded in favour of respondent against the applicant.”