Disputed 5.3bn Shares: Court Yet To Hear Ecobank’s Recusal Motion, Adjourns Barbican/FBN Holdings’ Suit To Nov. 20

Justice Ayokunle Faji of the Federal High Court, Lagos, Monday, adjourned further proceedings in the suit filed by an investment firm, Barbican Capital Limited against First Bank of Nigeria Holdings Plc (FBN Holdings), due to the dispute that arose over 5, 386, 397, 202 billion shares.

The plaintiff/applicant, had dragged FBN Holdings before the court in a suit marked FHC/L/CS/1172/24, claiming that over the years, it had cumulatively acquired about 5, 386, 397, 202 billion shares, representing 15.1 per cent of FBN Holdings’ overall shares listed on the Nigerian Stock Exchange.

The Barbican’s action has been opposed by the Ecobank Limited, arguing that the funds used by Barbican Capital to purchase the shares were allegedly diverted from the sale of Honeywell Flour Mills shares to Flour Mills of Nigeria Plc.

Ecobank through its lawyer, Adekunle B. Ogunba (SAN), had told the court that the move was made by the Honeywell companies and their chairman, Dr. Oba Otudeko, was to evade payment of debts owed to Ecobank, despite a Supreme Court ruling in favour of the bank.

Ecobank has filed application for joinder in the suit and also an application for the judge to recuse himself from the matter, since he had earlier conducted proceedings in the dispute between Ecobank and Honeywell, wherein he held that the Honeywell companies are not indebted to the bank (though the decision was set aside, as both the Court of appeal and the Supreme Court affirmed that the Honeywell companies are still indebted to Ecobank)

At the resumed hearing of the matter today, the plaintiff applicant, Barbican Capital Limited was represented by Mr. Olanipekun (SAN), Mr. Babajide Koku SAN leading M. Ipaye appeared for the FBN Holdings, Hakeem O. Afolabi (SAN) appeared for the Third Party (Central Bank of Nigeria), while A. O. Ogunba (SAN) led A. O. Divine and O. T. Ogunba appeared for Ecobank Limited, as an objector to the suit and party seeking to be joined.

Addressing the court, Olanipekun (SAN) informed the court that a notice of discontinuance has been filed by the Plaintiff and that in view of that, the Plaintiff intends to explore amicable resolution of the dispute. He then urged the court to act on the notice of discontinuance.

Responding, FBN Holdings’ lawyer, Babajide Koku (SAN), told the court that he just being served with the notice in court, which is to allow parties to explore settlement.

Koku (SAN) however asked for a short adjourned date, to enable him contact his client on the issue before the court make any order.

In the same vein, Hakeem O. Afolabi (SAN) counsel for the third party (CBN), did not opposed the plaintiff’s notice.

However, Ecobank’s lawyer, Ogunba (SAN), while expressing surprise about the notice, said he was taking back by the plaintiff’s notice of discontinuance, as he was not served with the notice.

Ogunba (SAN) also told the court that his client’s (Ecobank) still have two pending applications before the court.

The lawyer, while not opposed to the adjournment sought for by FBN Holdings lawyer, he told the court that as a party in the suit, his client ought to be carried along by the other parties.

By the agreement of all the counsel, Justice Faji, adjourned the matter to November 20, for further proceedings.