A firm, Obat Oil and Petroleum
Limited, yesterday proposed an out of court settlement with Skye Bank Plc in an
alleged N1.4 billion debt owed the bank.
The bank, in a suit before Justice Jude Dagat of the Federal High
Court in Lagos, is seeking the enforcement of an arbitral award dated August 7,
2015.
Skye Bank sought to recover a debt of N2,142,462,572.26 owed it by
the oil firm.
The loan was guaranteed by Oba Frederick Eniti Akinruntan.
Yesterday, the company’s lawyer Mr. Olalekan Ojo moved a motion to regularise
his processes, which was granted.
He said parties met on several occasions
with a view to settling out of court.
“I most respectfully apply for a short
adjournment to enable parties to effectively agree on repayment terms. They
have been customers for years,” he said.
The bank’s lawyer, Mr. Sylva Ogwemoh
(SAN), confirmed that meetings had been held, but that no offer had been made.
The senior advocate said: “No payment
terms have been proposed to us. My hands are tied and my clients are eager.
What’s in issue is depositors’ funds. If there’s a display of good faith, why
not?”
Ogwemoh said a meeting was held on November
14, but that Obat Oil did not improve on its initial offer of N100 million part
payment.
“They owe N1.4 billion and their offer is
not even up to half a billion naira. Nothing reasonable has been put on the
table,” Ogwemoh added.
But Ojo promised that his client would “take this issue of amicable settlement
seriously”.
Justice Dagat encouraged the parties to
settle out of court.
“We always encourage settlement. I’ll give
a short date for parties to explore settlement,” he said.
The case was first taken before an
arbitrator, Aare Afe Babalola (SAN), who awarded N1,406,944,352.76 to the
claimant, which he said represented the amount the respondents admitted as
being the balance as at March 31, 2014.
Aare Babalola also awarded 10 per cent
interest annually on the N1.4 billion from April 1l, 2014, till final
liquidation of the amount.
The bank, however, alleged that Obat Oil
and Dr. Akinruntan failed to comply with the arbitration award. It applied to
the court to order the award’s enforcement, which was granted.
Justice Dagat adjourned till January 13
for report of settlement or hearing of pending applications.
thenation
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