Industrial Court Orders Sterling Bank to Transfer Frozen Fund to Judgment Creditor Within 48 hours
The Presiding Judge, Jos Judicial Division of the National Industrial Court, Hon. Justice Ibrahim Galadima has declared the order nisi made in favour of judgment creditor Mr. Ogbe against Sterling Bank on 24 June 2024 as final.
The Court ordered Sterling Bank Plc to transfer the sum of N290,297.39 (Two Hundred and Ninety Thousand, Two Hundred and Ninety-Seven Hundred, Thirty-Nine Kobo from the frozen account of Mighty Jet International as of the date of the order nisi, to the account specified by Mr Ogbe, partially satisfying the judgment debt owed by the judgment debtor according to the court’s ruling delivered on 26 March 2021 within 48 hours.
From facts, the applicant- Mighty Jet International Ltd acting as an interested party in the post-judgment garnishee application initiated by the judgment creditor sought an order discharging and or setting aside the order nisi [made] on the account of the applicant with Sterling Bank PLC on the ground that the applicant not being party to the suit wherein judgment was obtained in favour of the judgment creditor.
The learned counsel averred that the applicant is not Mighty Jets Football Club Ltd. but Mighty Jet International Ltd. which is a separate corporate personality with different registration numbers, directors, and date of incorporation.
The applicant maintained that it would occasion great hardship on the applicant if its account is continuously withheld since the same is used for the payment of the applicant’s staff.
In reaction to the application, the judgment creditor- Mr Ogbe averred that whereas on paper they appear separate as a result of their separate corporate registrations, in practice however, they are the same, and argued there has been no name change in the Nigerian Football Federation from Mighty Jets Football Club to Mighty Jet International Ltd to reflect the final standing of the club in the 2023/24 football season.
The learned counsel to the judgment creditor, I. M. Gwani Esq, maintained that the applicant intentionally withheld complete information from the court to mislead it into issuing incorrect orders and argued that it would be unjust to set aside the court’s earlier order nisi made in favour of the judgment creditor.
In a well-considered ruling, the Presiding Judge, Justice Ibrahim Galadima held that Mighty Jet International Ltd’s application lacked merit and the application was dismissed with N150,000.00 cost in favour of the judgment creditor.
Justice Galadima stated that the court is confronted with evidence that Mighty Jet International Ltd. and Mighty Jets Football Club are registered with distinct incorporation dates and should be treated as separate legal entities unless there is compelling evidence of an operational merger or identity.
The Court reasoned that Mr Ogbe’s submission that the account was originally opened under the name of Mighty Jets Football Club and later changed to Mighty Jet International Ltd. raises significant questions about the entities’ operational independence and the principle of fairness and the need to prevent undue harm to a separate legal entity must be balanced against the interests of the judgment creditor.
“It is evident that both entities still exist, as Mighty Jets Football Club continues to be used in the Nigeria Football League, as shown by the judgment creditor’s unchallenged exhibit SA4. Additionally, the applicant/interested party has not disassociated itself from any achievements made under the name Mighty Jets FC, which would suggest that they are separate entities.
“The account name at the garnishee bank was only changed to reflect the correct name, Mighty Jet International Ltd., rather than Mighty Jets Football Club expenditure account. There is no indication of a division in operational responsibilities or liabilities between the two entities or any termination of liabilities that Mighty Jets FC owes to others.” The Court ruled.
