Court Ordered Sale Of Algrain Foods Limited, Receiver Clarifies

Court Ordered Sale Of Algrain Foods Limited

OpenLife Nigeria reports that the Receiver appointed by both First City Monument Bank, FCMB, and First Bank of Nigeria Limited, FBN, Mr. Ade Oyebanji, a Senior Advocate of Nigeria (SAN) to manage the affairs of Algrain Foods Limited has made clarification justifying the disposal of the assets of the company.

The clarification followed a petition to the Inspector General of Police, IGP, by the counsel to Algrain Foods Limited, Chief Alloysious Ezenduka, in which he alleged that the assets were sold illegally.

Mr. Oyebanji, SAN, in a statement he issued on behalf of the two banks clarified that Algrain Foods Limited was a customer of FCMB and FBN and that both financial institutions appointed FCMB Trustees Limited as the Trustee to manage the facilities on their behalf.

He said that the account of Algrain Foods Limited became toxic in 2016 and the Trustee appointed Mr. Ade Oyebanji, SAN, as the Receiver over all assets and debenture as duly registered with the Corporate Affairs Commission, Abuja.

According to the statement, the Receiver obtained protective interim order of possession in 2017 from the Federal High Court Lagos, in suit No: FHC/L/CS/06/2017. But during the pendency of the suit, in 2020, Algrain Foods Limited and its Director Anthony Obidulu sued the Bank and the Receiver before the Federal High Court, claiming among others that the Receiver committed trespass and that the Court should appoint independent auditors, and grant the sum of N20 billion against the Bank in suit No: FHC/L/CS/1764/2020.

The Receiver clarified further that the case of Algrain Foods Limited, Chief Anthony Obidulu and Mrs. Nkechi Obidulu Vs. CSL Trustees Limited(FCMB), First Bank of Nigeria Limited and Emmanuel Adeyeye Oyebanji was dismissed on 24 October 2021 as an abuse of Court process by the Federal High Court.

Few days later, on 3rd November, 2021 the Federal High Court delivered Judgment in the receivership case in favour of the Bank and the Receiver in suit No: FHC/L/CS/06/2017 between CSL Trustees Limited, First City Monument Bank Limited, and First Bank of Nigeria Limited Vs. Algrain Foods Limited, and Anthony Obidulu.

The Federal High Court granted all the reliefs sought by the Trustees and the Bank as Follows:

(a) A DECLARATION that EMMANUEL ADEYEYE OYEBANJI being the Receiver appointed by the 1st Applicant by virtue of the Deed of All Assets Debenture dated 18th October 2013 and the Supplemental Deed of All Assets Debenture dated 1st February 2016 is entitled to remain in possession, continue to manage, superintend and TO SELL the said property by the provisions of the said Deeds and his Deed of appointment dated November, 2016 without interference, obstruction and/or hindrance in any manner from the Respondents, or their agents, servants and privies under section 393of CAMA.

(b) AN ORDER authorizing and/or directing the Receiver to RETAIN POSSESSION of the Respondents assets mortgaged to the 1st -3rd Applicants by virtue of the Deed of All Assets Debenture dated 18th October, 2013 and the Supplemental Deed of All Assets Debenture dated 1st February, 2016 during the tenure of his appointment as Receiver.

(c) PERPETUAL INJUNCTION restraining the Respondents their servants, agents, privies, or any other person whatsoever from interfering with, obstructing, disturbing and/or frustrating the Receiver from exercising the powers, duties and functions vested in him or performing his duties as Receiver of the Respondents assets mortgaged to the 1st – 3rd Applicants by virtue of the Deed of All Assets Debenture dated 18th October, 2013 and the Supplemental Deed of All Assets Debenture dated 1st February, 2016

Oyebanji, SAN, said that the Judgment was a declaratory judgment. “There was no appeal; no stay of execution filed by Counsel to AIgrain Foods Limited until 9th of November 2021,” he said.

He said that on 7th November, 2021 in accordance with the judgment of the Court authorizing Sale, the Receiver exercised the Power of Sale in pursuant to the provision of CAMA Schedule II. “The Judgment was declaratory and took effect from the date of delivery.

There was no notice of appeal and or stay of Execution as at 7th November 2021 filed by defendant Algrain Foods Limited against the Declaratory Judgment pronounced on 3rd November 2021,” Oyebanji said.

He added that Mr. Alloysious Ezenduka, counsel to Algrain Foods Limited “failed, neglected and or deliberately refused to file its notice of appeal and stay of execution before the exercise of the power of sale as ordered by the Federal High Court.”

He said that Algrain Food Limited filed a Notice of Appeal to the Court of Appeal dated 9th November 2021 and the matter is currently pending at the Appeal Court.

“Algrain Foods Limited rather than wait for the outcome of the appeal has proceeded via the route of self-help by employing the services of law enforcement agents to deny the buyer the use of the property they bought legally and also to harass the Receiver and the bank by dragging them to the law enforcement agents from time to time all in a bid to force them to yield to the pressure being mounted by them,” he said.

The Senior Advocate reiterated that “It is total fallacy and complete misinformation that the Receiver has been stealing the assets of Algrain Food Limited but rather the assets were legally disposed of by virtue of the Judgment and that “there is no Judgment or order from the Court of Appeal reversing the Judgment of the Federal High Court.”

Also, he said that all the allegations leveled against FCMB and The Receiver before the Police have been dismissed by the Federal High Court in the ruling dated 24th October 2021. “Therefore, the petition to the Inspector General of Police is an unholy attempt to reverse the judgment of the court through the back door,” he said.