Ecobank Nigeria Limited has announced its decision to appeal a recent judgment delivered by the Federal High Court in Lagos, presided over by Hon. Justice Liman, in favor of Honeywell Flour Mills. The court ruled that Ecobank must pay the sum of N72 billion to Honeywell Flour Mills.
In response to the judgment, Ecobank issued a statement expressing its belief that the decision was flawed and unsustainable. The bank stated that it would vigorously challenge the ruling and remained confident that it could reverse the judgment in the higher courts.
The legal dispute between Ecobank and Honeywell Flour Mills dates back to 2018 when the bank filed an action for the enforcement of its Undertaking as to Damages, which was submitted in relation to its Winding Up Petition and Ex-Parte Orders that were granted in its favor.
Ecobank raised a Notice of Preliminary Objection in October 2018, challenging the jurisdiction of the Federal High Court to hear the case. The bank argued that the subject matter of the suit, which involved a claim for damages arising from an Ex-Parte Order, did not fall under the provisions of Section 251 (d) of the Constitution, as it was not related to a typical Banker-Customer relationship.
The trial concluded on March 9, 2021, with both parties presenting their final written addresses, along with Ecobank’s Notice of Preliminary Objection on March 16, 2022. The court then scheduled the judgment date for May 27, 2022.
Despite the initial delay in delivering the judgment, the court finally pronounced its decision, ruling in favor of Honeywell Flour Mills. This outcome prompted Ecobank to file a Motion on notice dated March 9, 2023, seeking to dismiss the Suit, considering the Supreme Court’s previous judgment in favor of Ecobank, which had held Honeywell Flour Mills accountable for its debts.
However, the court rejected Ecobank’s applications, maintaining that it had jurisdiction to entertain the suit and asserting that the case had not become academic.
Ecobank has expressed disappointment in the court’s decision, citing several objections that it believes were overlooked. The bank claimed that the Ex-Parte Orders were discharged based on points of law, not due to any frivolous actions by the bank. Additionally, Ecobank asserted that Honeywell’s alleged damages were not supported by the documents presented, including annual returns, which it claimed showed the alleged damage was non-existent.
Moreover, Ecobank presented documents from other banks that were served with the Ex-Parte Order, demonstrating that Honeywell Flour Mills was heavily indebted to these banks, making it implausible that the Ex-Parte Orders could have frozen funds in those accounts.
Ecobank further accused Honeywell Flour Mills of maliciously preparing documents solely for the purpose of instituting the Suit and claiming unjustifiable sums from the bank.
The bank reaffirmed its commitment to transparency and adherence to laws and regulations, highlighting its membership in the Ecobank Group, a Pan-African bank with a strong dedication to operating ethically in all the countries where it conducts business.
It is important to note that Justice Liman’s recent judgment ordered Ecobank Plc to pay the Honeywell Group N72 billion over an illegal Ex-Parte Order obtained by the bank against Honeywell Group. The court granted all the reliefs sought by Honeywell, dismissing Ecobank’s request.
As the legal battle continues, the matter is set to be resolved through the applicable judicial process, as both parties seek a fair and just resolution.
