Court Overturns Asset Freeze On General Hydrocarbons Limited

Lagos Federal High Court Lifts Mareva Injunction Against GHL

In a significant legal victory for General Hydrocarbons Limited (GHL), the Federal High Court in Lagos has overturned a Mareva injunction that had previously frozen the company’s assets along with those of its directors.

Court Rules in Favor of GHL

The decision came after GHL’s legal counsel, Abiodun Layonu, SAN, successfully argued that the injunction violated a prior ruling from a court of concurrent jurisdiction. Justice Dehinde Dipeolu, who presided over the case, compared the Mareva injunction with an earlier order issued by Justice Ambrose Lewis-Allagoa in Suit No. 1953 and determined that the asset freeze should be revoked.

First Bank Accused of Misrepresentation

The court found that First Bank of Nigeria and FBNQUEST LTD, the parties that secured the injunction, failed to fully disclose Justice Lewis-Allagoa’s prior ruling. This omission made the Mareva injunction legally untenable. Consequently, the court agreed with GHL’s position that First Bank had intentionally withheld crucial facts, misleading the court into granting the asset freeze.

Given these findings, the court had no choice but to lift the order, restoring GHL’s financial and operational stability.

Legal Challenge Against First Bank

First Bank had initially sought the injunction through an ex-parte application against General Hydrocarbons Limited and 15 other entities, despite a standing judgment in favor of GHL.

In response, GHL requested the court to discharge the asset freeze, arguing that it was obtained through fraudulent misrepresentation and concealment of material facts. The company and other affected parties accused First Bank of misleading the judiciary to secure an order against them.

The court, after evaluating all the presented evidence, sided with GHL and nullified the freezing order, citing improper legal conduct by First Bank.

GHL to Seek $1 Billion in Damages

Following the court’s ruling, GHL’s directors, who were also impacted by the ex-parte asset freeze, have initiated legal proceedings against First Bank globally. Each director is seeking $1 billion in damages for defamation and wrongful freezing of their accounts.

Additionally, GHL is filing a complaint against First Bank’s legal representatives, Babajide Koku, SAN, and Victor Ogude, SAN, before the Legal Practitioners Privileges Committee, alleging professional misconduct in their handling of the case.