N17.8bn Debt: Court to Hear Contempt Suit Against Afex Officials June 20
Justice Chukwujekwu Aneke of the Lagos Division of the Federal High Court has fixed June 20 for hearing of contempt charge filed against Afex Commodities Exchange Ltd, and five of its directors over alleged failure to obey court order in respect of the firm’s N17,808,452,467.107 loan facilities granted by Guaranty Trust Bank.
The judge adjourned the matter after hearing arguments from Chief Ajibola Aribisala SAN, counsel to the plaintiff (GTB), and Collins Ogbonna counsel to the judgment debtor (Afex Commodities Exchange).
The alleged contemnors are Afex Commodities Exchange Ltd, and its directors, Ayodeji Olaleye Balogun, Jendayi Fraaser, Justin Lee Topilow, Mobolaji Oluwatomi Adeoye, and Koonal Bharat Ghandi.
When the matter came up yesterday, Aribisala observed that the alleged contemnors were not in court, and urged the court to issue bench warrants against them to compel them to come to court.
He stated that the order of court authorising Guaranty Trust (GTB) to take over the funds and assets belonging to Afex Commodities Exchange following its inability to pay N17,808,452,467.107 loan facilities granted by the bank has not been obeyed.
Aribisala said the issue of contempt is sui generis (of its own kind), and takes precedence above any other applications file before the court.
He submitted that every person to whom an order of court is directed has an unqualified obligation to obey the order until it was discharged or set aside on appeal.
He argued that the alleged contemnors are still liable to show cause why they should not be punished for contempt.
But, counsel to the judgment debtor, Ogbonna objected to the issue of bench warrant against the defendants, arguing that his law firm has just been served in court with processes.
Citing legal authorities, he urged the court to hear a motion filed by the defendants challenging the order of court, authorising the bank to temporarily take over the funds and assets belonging to Afex Commodities.
Justice Aneke had on May 27 granted an interim Global Standing Instruction (GSI) injunctive relief, following an application moved by GTBank’s counsel.
GSI was created as a last resort for banks and financial institutions to recover outstanding loans from chronic debtors.
The court also granted a pre-judgment interest on the N15,766,475,417.06 at the prevailing rediscount rate of 28 per cent per annum approved by the CBN from April 18, 2024, when the plaintiff’s letter of demand dated April 17, 2024, was delivered to the defendant until judgment is delivered in this suit.
Post-judgment interest on the loan was N15,766,475,417.06 and cost of recovery and incidental expenses was N2,041,977,050.047. It further granted a mandatory injunction commanding the defendant to allow the plaintiff to appoint its appointed agent to take over the commodities stored by the defendant in the 16 warehouses across seven states. The court also directed the police and Civil Defence to assist GTBank in securing and dealing with the commodities stored by the defendant in the 16 warehouses.
GTBank is the sole plaintiff in the suit marked FHC/L/CS/911/2024. Afex Commodities Exchange is the defendant, while 27 commercial banks and all money deposit banks were listed as nominal respondents.
However, the defendants allegedly refused to comply with orders of court, thereby compelling the llaintiff to filed Form 48, and Form 49 against the defendants.
Form 48, and Form 49, are notice of consequences of disobedience of order of court, and notice to show cause why an order of committal should not be made against the person.
