The Federal High Court in Abuja on Wednesday appointed a liquidator for Dantata & Sawoe Construction Company Limited over its failure to pay $1.4 million in accordance with the terms of a settlement agreement regarding an alleged $1,257,592.83 debt owed to Zutari Consulting Nigeria Ltd, following subcontract work on the Dangote Fertilizer Plant project in Lekki, Lagos.
Justice Mohammed Umar granted Zutari Consulting’s request for the appointment of a liquidator, noting that Dantata & Sawoe had been given ample time by the court to settle the debt but the company repeatedly presented excuses.
The development comes months after the court approved the publication of a winding-up petition advertisement against Dantata & Sawoe in two national daily newspapers.
Zutari Consulting is involved in engineering design, consulting, and supervision of engineering works, while Dantata & Sawoe is engaged in general construction services.
Last year, Naijaonpoint reported that the court had granted the parties a 30-day extension for settlement and adjourned the matter several times to hear Zutari Consulting’s motion seeking the appointment of a provisional liquidator for Dantata & Sawoe over the alleged debt.
Zutari Consulting’s lawyer, Chris Ekemezie, stated that arbitration over the matter was conducted in London, United Kingdom, and that a final arbitral award issued on April 7, 2021, held Dantata & Sawoe liable for the debt.
He added that the petitioner was engaged by the respondent in 2015 to execute some design components of the respondent’s subcontract works at the Dangote Fertilizer Plant project in Lekki.
They contended that after the petitioner completed the job, Dantata & Sawoe became indebted to it in the sum of “$1,257,592.83, ZAR 2,136,623.39, and £4,364.38.”
He argued that the respondent’s failure to pay the outstanding amount led to a dispute, which was referred to the International Chamber of Commerce for arbitration after both parties were unable to resolve it themselves. The tribunal ruled in the petitioner’s favour.
However, in a notice of preliminary objection filed on May 9, 2023, Dantata & Sawoe’s legal team urged the court to strike out the petition for lack of jurisdiction, informing the court that an appeal had been filed amid ongoing settlement negotiations.
Naijaonpoint reports that the case has witnessed several adjournments.
At Wednesday’s resumed proceedings, the petitioner told the court that the respondent had failed to fully settle its debt, noting that its client’s entitlements were far above the 75% payment proposed by Dantata & Sawoe.
Naijaonpoint gathered that an appeal on the matter is pending at the Court of Appeal.
Naijaonpoint also reports that the Federal High Court has jurisdiction over the transactions involving both parties.
The court will examine the legal issues in determining the final outcome of the case.