Legal Blow For First Bank As Court Dismisses Suit Against GHL, Citing Abuse Of Process
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A Federal High Court in Port Harcourt has dismissed the lawsuit filed by First Bank of Nigeria against General Hydrocarbons Limited (GHL).
Presiding over the case, Justice E.A. Obile ruled that the court lacked the jurisdiction to hear the matter, agreeing with the arguments presented by GHL’s legal counsel, Dr. Biodun Layonu.
The court upheld GHL’s preliminary objection, determining that the suit was an abuse of judicial process and a violation of a prior ruling issued by Justice Allagoa on December 12, 2024, in Suit No. FHC/L/CS/1953/2024. It was noted that First Bank had admitted in its counter-affidavit that Justice Allagoa’s order had expressly restrained it from enforcing any receivables related to the facility agreement in question.
Additionally, the court rejected First Bank’s attempt to differentiate this case from the earlier suit, stressing that all subsequent agreements between the parties stemmed from a legally binding Memorandum of Understanding (MoU), which First Bank had repeatedly breached.
As a result, the court dismissed the lawsuit, concurring with GHL’s position that the ex parte orders issued on January 9, 2025, had automatically lapsed by law. These orders, which sought to place a lien on crude oil stored aboard the FPSO vessel Tamara Tokoni and instructed various authorities to assist in enforcing the arrest order, were declared null and void.
This ruling clears the way for arbitration proceedings at the Lagos Court of Arbitration, where GHL is pursuing substantial damages against First Bank for multiple contractual violations.
