First bank challenges court decision in GHL debt recovery case

The Federal High Court has ruled that the ongoing dispute between First Bank of Nigeria and General Hydrocarbons Limited (GHL) is a case of debt recovery rather than a maritime claim. This decision comes despite First Bank’s efforts to prevent what it described as a “fraudulent attempt” to sell crude oil stored on the FPSO Tamara Tokoni.

The court also noted that an ex parte order to arrest the cargo had expired, as such orders are only valid for 14 days unless renewed. However, First Bank insists that the crude oil remains under arrest and has filed an appeal against the ruling. The bank has also sought an injunction to prevent GHL from dealing with the cargo pending the appeal’s outcome.

In another related case, a Federal High Court in Port Harcourt dismissed First Bank’s suit against GHL, citing a lack of jurisdiction and labeling the case as an abuse of court process. This decision paves the way for arbitration at the Lagos Court of Arbitration, where GHL is seeking hundreds of millions of dollars in damages from First Bank for alleged breaches of obligations.

First Bank has expressed strong disagreement with the rulings, stating that it will pursue every legal means to protect its stakeholders’ interests and prevent fraudulent debtors from evading their obligations. The bank maintains its respect for the judiciary but views the decisions as miscarriages of justice.