First Financial institution in hassle over breach of contract, will get 48 hours to obey court docket order Printed on Could 24, 2021By Amos Tauna
The First Financial institution Plc is to be sued for disobedience and breach of contract if it didn’t obey the Federal Excessive Courtroom’s 48 hours ultimatum served to to it.
In a letter to the financial institution by the Counsel to Eleme Petro Chemical Co-operative Funding and Credit score society Restricted, A.A. Ibrahim SAN obtained by DAILY POST, it said the place of the regulation because it pertains to obligations of a Financial institution to its clients, citing the case of Union Financial institution PLC vs N.M Okpara Chimaeze (2014) 9 NWLR (PT.1411) web page 166 whereby Justice Ariwoola JSC. held that
It said, “It’s the responsibility of banker to its buyer to honor and pay cheques drawn on it by the client so long as it has in its possession on the materials time enough and out there funds for the aim….”
The barrister instructed the financial institution that a pending enchantment doesn’t function as keep of execution, saying that something achieved opposite to the lawful order of a court docket is an infrigement of the purchasers proper.
Recall that First Financial institution regardless of the order of Justice N.E Maha of the Federal Excessive Courtroom Abuja delivered on the 15th day of February 2021, vacating the interim restriction positioned on the co-operatives’ account by EFCC, has refused and or uncared for to obey the order.
Recall additionally that in February 26, 2009, the Federal Authorities via the Nationwide Council on Privatization had authorized the sale of 10% of its fairness shares in Indorama Eleme Petrochemicals ltd, Port Harcourt, Rivers State to the host neighborhood and workers of Indorama Eleme Petrochemicals ltd.
The 10% fairness shares was shared as 7.5% to the host neighborhood whereas the remaining 2.5% was allotted to the Employees of Indoroma Eleme Petrochemicals.
￼ Employees got here collectively below Eleme petrochemical co-operatives in compliance to the federal authorities directive that a particular objective car be shaped the place all members will belong to allow them purchase the shares.
In line with the letter, downside started in 2013 when 10 staffs who initially subscribed to the acquisition of the two.5 fairness shares had their jobs terminated from the employment of Indorama Eleme Petrochemicals.
It defined that lndoroma Petrochemicals since then started a authorized battle as as to if the laid off workers can proceed to benefit from the dividends since they weren’t longer workers within the firm and in so doing sought to interchange the laid off workers with new recruited workers.
It famous that when the shareholding grew to become a problem the laid of workers approached the River State Ministry of Commerce and Business to arbitrate between it and the cooperative, the Ministry gave an Arbitral Award in favor of the laid off workers and consequently the laid off staffs of the co-operative, approached the federal excessive court docket to implement the arbitral award as required by regulation. The award grew to become a judgment of the Federal Excessive Courtroom.
The newly recruited workers been instigated by their employers Indoroma Eleme Petrochemicals Firm restricted approached The Nationwide Industrial court docket stating that the arbitral award was illegally procured ,when the appropriate factor to do was to have appealed the Federal Excessive Courtroom judgement, the economic court docket in putting the case out said that it cannot sit on an enchantment over a matter that has been determined by a court docket of co-ordinate jurisdiction. The newly recruited workers thereafter filed an Attraction over the choice of the Industrial court docket.
It’s to be famous that the EFCC began to analyze the possession of the shares of the cooperative after the circumstances on the Federal excessive court docket and the Industrial Courtroom had been determined.
The circumstances pending in numerous courts over the possession of the shares of Indorama was triggered by the BPE which was a celebration sued within the case on the Industrial court docket, when it petitioned the EFCC over the matter on the instigation of the newly recruited workers of Indorama and Indorama itself. We will deliver you additional developments as they unfold.