First Bank in trouble over breach of contract, gets 48 hours to obey court order Published on May 24, 2021By Amos Tauna

The First Bank Plc is to be sued for disobedience and breach of contract if it failed to obey the Federal High Court’s 48 hours ultimatum served to to it.

In a letter to the bank by the Counsel to Eleme Petro Chemical Co-operative Investment and Credit society Limited, A.A. Ibrahim SAN obtained by DAILY POST, it stated the position of the law as it pertains to obligations of a Bank to its customers, citing the case of Union Bank PLC vs N.M Okpara Chimaeze (2014) 9 NWLR (PT.1411) page 166 wherein Justice Ariwoola JSC. held that

It stated, “It is the duty of banker to its customer to honor and pay cheques drawn on it by the customer as long as it has in its possession at the material time sufficient and available funds for the purpose….”

The barrister told the bank that a pending appeal does not operate as stay of execution, saying that anything done contrary to the lawful order of a court is an infrigement of the customers right.

Recall that First Bank despite the order of Justice N.E Maha of the Federal High Court Abuja delivered on the 15th day of February 2021, vacating the interim restriction placed on the co-operatives’ account by EFCC, has refused and or neglected to obey the order.

Recall also that in February 26, 2009, the Federal Government through the National Council on Privatization had approved the sale of 10% of its equity shares in Indorama Eleme Petrochemicals ltd, Port Harcourt, Rivers State to the host community and interested staff of Indorama Eleme Petrochemicals ltd.

The 10% equity shares was shared as 7.5% to the host community while the remaining 2.5% was allotted to the Staff of Indoroma Eleme Petrochemicals.

Interested Staff came together under Eleme petrochemical co-operatives in compliance to the federal government directive that a special purpose vehicle be formed where all members will belong to enable them buy the shares.

According to the letter, problem began in 2013 when 10 staffs who initially subscribed to the purchase of the 2.5 equity shares had their jobs terminated from the employment of Indorama Eleme Petrochemicals.

It explained that lndoroma Petrochemicals since then began a legal battle as to whether the laid off staff can continue to enjoy the dividends since they were not longer staff in the company and in so doing sought to replace the laid off staff with new recruited staff.

It noted that when the shareholding became an issue the laid of staff approached the River State Ministry of Commerce and Industry to arbitrate between it and the cooperative, the Ministry gave an Arbitral Award in favor of the laid off staff and consequently the laid off staffs of the co-operative, approached the federal high court to enforce the arbitral award as required by law. The award became a judgment of the Federal High Court.

The newly recruited staff been instigated by their employers Indoroma Eleme Petrochemicals Company limited approached The National Industrial court stating that the arbitral award was illegally procured ,when the right thing to do was to have appealed the Federal High Court judgement, the industrial court in striking the case out stated that it can not sit on an appeal over a matter that has been decided by a court of co-ordinate jurisdiction. The newly recruited staff thereafter filed an Appeal over the decision of the Industrial court.

It is to be noted that the EFCC started to investigate the ownership of the shares of the cooperative after the cases at the Federal high court and the Industrial Court had been decided.

The cases pending in various courts over the ownership of the shares of Indorama was triggered by the BPE which was a party sued in the case at the Industrial court, when it petitioned the EFCC over the matter at the instigation of the newly recruited staff of Indorama and Indorama itself. We shall bring you further developments as they unfold.

https://dailypost.ng/2021/05/24/first-bank-in-trouble-over-breach-of-contract-gets-48-hours-to-obey-court-order/?amp

Ok

That is absolutely non of my business

T

That’s fantabulous

Disjointed report

See how bad this country has decayed that corporate organizations don't obey court orders, even the no 1 citizen himself doesn't obey judicial instructions.

What are they saying??

savcy:
First bank has been in the news for the wrong reasons lately. I used to view them as one of the most organised banking institutions in the country, but alas! I hope what my mind is telling me won't happen to this bank. If Diamond bank could go under, I don't know any one that can't. They really have to put themselves together.

Diamond bank went under because of carelessness and incompetence on the side of mgt

Buhari, Tinubu, Apc must be thrown out

In a complicated case like this First Bank is legally right to stay execution of any court order until all related matters on the same subject are settled in various court and anti-corruption agencies including BPE complete their investigation.

The barrister told the bank that a pending appeal does not operate as stay of execution, saying that anything done contrary to the lawful order of a court is an infrigement of the customers right.

I don't understand the type of jankara lawyers and judges in Rivers state. If the above is correct, we should have been having changes of governor at each court ruling against the current occupant of the post. The law, Political parties and INEC shouldn't have been waiting for supreme Court judgement until they decide who to occupy the position.

You see since the bastardization Court processes and auction of court order by Wike and one of his supreme Court judge on political rulings, Rivers states courts and judges has been dishing out incoherent and illogical rulings.

Lawless!
When government do not obey court orders ,you can guess how private organizations will behave.

court issues

It shall be well with Nigeria.

Solsix:
What are they saying??

First bank

Solsix:
What are they saying??

Only student of
Finance
Banking and Finance
Economics
Accounting
Will understand wella


Esp the court judgment.

savcy:
First bank has been in the news for the wrong reasons lately. I used to view them as one of the most organised banking institutions in the country, but alas! I hope what my mind is telling me won't happen to this bank. If Diamond bank could go under, I don't know any one that can't. They really have to put themselves together.

If only you read the article!

Evil everywhere

TGM2015:
In a complicated case like this First Bank is legally right to stay execution of any court order until all related matters on the same subject are settled in various court and anti-corruption agencies including BPE complete their investigation.


I don't understand the type of jankara lawyers and judges in Rivers state. If the above is correct, we should have been having changes of governor at each court ruling against the current occupant of the post. The law, Political parties and INEC shouldn't have been waiting for supreme Court judgement until they decide who to occupy the position.

You see since the bastardization Court processes and auction of court order by Wike and one of his supreme Court judge on political rulings, Rivers states courts and judges has been dishing out incoherent and illogical rulings.

Because a pending appeal is a stay of execution on its own.

Heblawyer expected to bank to file for a stay separately? Clown things

5yr old Facebook account for sale.

[b]F[/b]irstbank and [b]F[/b]raud.

Promote your business at 2k per 5000 reach, check my profile.

The title of this article is misleading...this case is between First Bank and the cooperative society of staff of Eleme Petrochemical and not with the company!

Apart from this First Bank is also trying to be prudent by obeying a freeze order imposed by the EFCC

I know FirstBank will not compromise any illigality. Its the mother of all Banks

First bank in this case is like an umpire, na who win e go give trophy to. A.A Ibrahim SAN should rather be making efforts to clear up the mess his client has with efcc and the industrial court.

Nigerian banks need to be professional.

If they refuse to obey court order, the lower court should compel and enforce arrest of the firstbank head by invoking article 49