Algrain Foods Limited was a customer of First City Monument Bank (FCMB) and First Bank of Nigeria Limited (FBNL) and both Banks advanced credit facilities to Algrain Foods Limited. First City Monument Bank and First Bank of Nigeria Limited appointed FCMB Trustees Limited (formerly CSL Trustees Limited) as the Trustee to manage the facilities on their behalf.
The account of Algrain Foods limited became toxic in the year 2016 and the Trustee appointed Mr. Ade Oyebanji SAN as the Receiver in respect of all assets debenture of the company as duly registered with Corporate Affairs Commission, Abuja.
1: The Receiver obtained protective interim order of possession in the year 2017 from the Federal High Court Lagos, in suit No: FHC/L/CS/06/2017.
2: In the year 2020, Algrain Foods Limited and its Director Anthony Obidulu sued the Bank and the Receiver before the Federal High Court, claiming among others that the Receiver committed Trespass, that the Court should appoint independent auditors, and the sum of ₦20B against the Bank in suit No: FHC/L/CS/1764/2020.
3: The case of Algrain Foods limited, Chief Anthony Obidulu and Mrs. Nkechi Obidulu Vs. CSL Trustees Limited (FCMB), First Bank of Nigeria Limited and Emmanuel Adeyeye Oyebanji was dismissed on the 18th October 2021 as an abuse of Court process by the Federal High Court.
4: On the 3rd Nov 2021 the Federal High Court delivered Judgment in the receivership case in favor of the Bank and the Receiver in suit No: FHC/L/CS/06/2017 between CSL Trustees Limited, First City Monument Bank Limited, and First Bank of Nigeria Limited Vs. Algrain Foods Limited, and Anthony Obidulu.
The Federal High Court granted all the reliefs sought by the Trustees and the Bank as Follows:
A DECLARATION that the Receiver appointed by the 1st Applicant by virtue of the Deed of All Assets Debenture dated 18th October, 2013 and the Supplemental Deed of All Assets Debenture dated 1st February, 2016 is entitled to remain in possession, continue to manage, superintend and TO SELL the said property by virtue of the provisions of the said Deeds and his Deed of appointment dated November, 2016 without interference, obstruction and / or hindrance in any manner from the Respondents, or their agents, servants and privies in accordance with section 393 of CAMA.
AN ORDER authorizing and / or directing the Receiver to RETAIN POSSESSION of the Respondents assets mortgaged to the 1st – 3rd Applicants by virtue of the Deed of All Assets Debenture dated 18th October, 2013 and the Supplemental Deed of All Assets Debenture dated 1st February, 2016 during the tenure of his appointment as Receiver.
PERPETUAL INJUNCTION restraining the Respondents their servants, agents, privies, or any other person whatsoever from interfering with, obstructing , disturbing and / or frustrating the Receiver from exercising the powers, duties and functions vested in him or performing his duties as Receiver of the Respondents assets mortgaged to the 1st – 3rd Applicants by virtue of the Deed of All Assets Debenture dated 18th October, 2013 and the Supplemental Deed of All Assets Debenture dated 1st February, 2016
5. The Judgment was a declaratory judgment and there was no appeal; no stay of execution filed by Counsel to Algrain Foods Limited until 9th of November 2021
6. On the 7th November 2021 in accordance with the judgement of the Court authorizing Sale, the Receiver exercised the Power of Sale and in pursuant to the provision of CAMA Schedule II
7. There was no notice of appeal and or stay of Execution as at 7th November 2021 filed by defendant Algrain Foods limited against the Declaratory Judgment pronounced on the 3rd November 2021.
8. The Judgement was declaratory which took effect from the date of delivery on the 3rd November 2021
9. Mr Alloysious Ezenduka counsel to Algrain Foods limited failed, neglected and or deliberately refused to file its notice of appeal and stay of execution before the exercise of the power of sale as ordered by the Federal High Court.
10. Algrain Food limited filed Notice of Appeal to the Court of Appeal dated 9th November 2021 and the matter is currently pending at the Appeal Court.
11. It is total fallacy and complete misinformation that the Receiver has been stealing the assets of Algrain foods limited but rather the assets were legally disposed off, by virtue of the Judgment.
12. There is no Judgment or order from the Court of Appeal reversing the Judgment of the Federal High Court.
13. All the allegations leveled against FCMB and The Receiver before the Police have been dismissed by the Federal High Court in the ruling dated 18th October 2021.
14. Algrain Foods Limited rather than wait for the outcome of its Appeal has proceeded via the route of self help by employing the services of Law Enforcement Agents to deny the buyer the use of the property they bought legally and also to harass the Receiver and the Bank by dragging them to the Law Enforcement Agents from time to time all in a bid to force them to yield to the pressure being mounted by them.
15. The petition is an unholy attempt to reverse the judgment of the Court through the back door.
ADE OYEBANJI SAN, FCIArb.
Receiver, Algrain Foods Limited