Sam Akpe
Justice Frank Onyiri of the Rivers State High Court on Friday issued a restraining order against attempts by Sterling Bank or its agents to confiscate or sell any property belonging to an indigenous firm, Zomay Marines and Logistics Limited, over conflicting unpaid debts, a matter that is already before the court for determination.
The order was given by the court in a ruling on an interlocutory application brought by Counsel to Zomay Marine and Logistics Limited, Chief Chris Okeke (SAN), seeking to stop the commercial bank from sealing off and taking over the company’s properties in Lagos, Abuja and Port Harcourt in Rivers State, which were used as collaterals in obtaining the loan that has turned controversial.
The applicants revealed to the court that the bank had already sealed off some properties belonging to the company and had arbitrarily frozen its account in defiance of the earlier ruling by the court.
It stressed that the Sterling Bank also acted in bad faith by concealing the appointment of receiving managers to the company’s properties.
The court, in its ruling, observed that the defendants had failed to reveal the entire debt owed by Zomay Marine and Logistics Limited to the Central Bank of Nigeria during a reconciliatory engagement by the apex bank, and that an independent investigation commissioned by the company had raised issues which Sterling Bank is required to respond to.
On the question of whether the application was an abuse of judicial process, the court noted that the applicants had already served the defendants an order issued by the court on March 4, 2025 to maintain status quo ante before proceeding to file another suit at the Federal High Court, and that the court has jurisdiction to entertain the suit since it was filed before the applicants became aware of the pendency of another suit.
Justice Onyiri observed that from the evidence before the court, Zomay Marine and Logistics Limited had paid an amount it believed to be its total indebtedness to the bank, only to have its account frozen and properties sealed up while issues of reconciliation arising from conflicting claims were yet to be concluded by the CBN.
It was the decision of the court that the essence of granting the interlocutory injunction was to stop any further injury on the claimant who had proven that it has legal rights that have been threatened and breached, and that the process sought to preserve such rights has already been initiated.
The pending suit, according to the judge, is to resolve the actual amount owed Sterling Bank by Zomay Marine and Logistics Limited, a situation that he said made the action of the bank in sealing up the property of the company evidently embarrassing, because it could lead to business losses, harm public trust, and damage earned goodwill.
In granting the application Justice Onyiri held: “An order of interlocutory is hereby issued restraining the defendants/respondents, agents, servants, privies or whosoever from continuing with the process of annihilating the properties of the claimant/applicants used as collateral pending the determination of the suit.
“An order of interlocutory is hereby issued restraining the defendants/respondents, agents, servants, privies or whosoever from continuing with the process of confiscating, decapitating, or sale of properties of the claimant/applicants used as collateral pending the determination of the suit.”
The judge thereafter adjourned the matter to May 29 for commencement of pre-trial conference.
In an interview with journalists shortly after the ruling, Frank Okpara, who held brief for Chief Okeke, stated that the court dismissed the preliminary objection of the respondents because they failed to disclose material facts regarding the debt while filing their objection.
Okpara said: “We filed this suit not knowing that they had filed another suit at the Federal High Court where they failed to disclose material facts too.
“So, the court on the premise of failure to come in good faith and non-disclosure of fiduciary interest which they owe every party dismissed their preliminary objection.
“We filed an application which is a motion for injunction for all parties to maintain status quo until the determination of this suit.
“The court has also granted that motion for injunction, reason being that they failed to disclose material facts, material exhibits that they were taking this matter to the Federal High Court.
“Two, that they also failed to allow the negotiation that was ongoing to be exhausted.
“Three, that again they also did not disclose to the court that these people have paid some amounts and that this is the amount remaining, on which premise the court found their applications unworthy and rather granted an injunction which was filed by the claimant for parties to maintain status quo ante, for them to vacate the area and for them not to take any further step in respect to the properties of the claimant.”
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