A Federal High Court in Port Harcourt has dismissed the lawsuit filed by First Bank of Nigeria (FBN) against General Hydrocarbons Limited (GHL), ruling that it lacked the jurisdiction to hear the case. Justice E.A. Obile upheld the preliminary objection raised by GHL’s counsel, Dr. ‘Biodun Layonu, SAN, and struck out the suit for being an abuse of court process and a violation of an earlier court order.
The court quoted a previous verdict by Justice Allagoa on December 12, 2024 in Suit No. FHC/L/CS/1953/2024 which restrained First Bank from enforcing any receivables arising from its facility agreement with GHL. First Bank, in its counter-affidavit acknowledged this restriction but attempted to distinguish the new case from the earlier ruling. The court rejected this argumen, ruling that FBN was attempting to override an existing court order.
In addition, the court ruled that the ex-parte orders issued on January 9, 2025 had expired by operation of law and were consequently set aside. This decision paves the way for arbitration at the Lagos Court of Arbitration where GHL is seeking substantial damages from First Bank for multiple contractual violations.
