The Court of Appeal has set aside a High Court ruling in the case between First Bank and General Hydrocarbons Ltd (GHL).
First Bank had alleged fraudulent diversion of proceeds of sale from an oil cargo which it said GHL had pledged as security for a loan.
The lower court had said the matter in contention was not a maritime claim but a case of debt recovery, forcing the lender to file an appeal against the ruling.
In its ruling on Thursday, the appellate court set aside the High Court judgement, ordering that proceeds from the sale of the cargo should be paid to the account of the court pending the determination of the legal action.
The dispute stems from a loan arrangement between First Bank of Nigeria Limited, a subsidiary of FBN Holdco Plc, and GHL, along with related entities such as GHL 121 Ltd, Aimonte Nigeria Limited, and Schlumberger Nigeria Limited.
On December 12, 2024, a court barred First Bank from enforcing loan recovery measures until arbitration proceedings were concluded.
Despite this development, it was reported that First Bank sought an ex-parte order against GHL and 15 other entities, leading to the asset freeze.
GHL and its co-defendants challenged the injunction, arguing it was obtained through fraudulent misrepresentation and the concealment of material facts.
They argued that had all the facts been presented before the trial judge, the order against them would not have been granted.
The trial judge upheld GHL’s arguments and consequently set aside the freezing order.