Anyiam Osigwe Group Limited has been ordered to wind up operations over its inability to pay a debt of N750m owed to First Bank of Nigeria Plc since November 2006.
The order was issued by Justice Ayokunle Faji a Federal High Court judge sitting in Lagos in his judgment delivered in suit number FHC/L/CP/925/14 between FBN as petitioner and Anyiam Osigwe Group as respondent.
Dr. Kemi Pinheiro SAN appeared for FBN while E. I. Maduabuchi was the respondent.
The bank’s prayer, as canvassed by Pinheiro, was that the group be wound up pursuant to the Companies and Allied Matters Act (CAMA). At the commencement of proceedings, the court analysed facts of the case and arguments in respect of same.
Justice Faji addressed the sole issue distilled for determination in the petitioner’s final written address dated February 16, 2022. He agreed with Pinheiro that the respondent failed to furnish any satisfactory evidence to show that the unliquidated debt was still being disputed, as argued by the respondent.
In his ruling, the judge said argument that the debt was the subject of another suit marked LD/1798/09 could not stand in court.
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The said suit has been struck out and unlisted.
Furthermore, the court discountenanced the respondent’s contention that it was solvent and able to pay its debt, ruling that the bank had proved and satisfied the court that the respondent was unable to pay its debt pursuant to Section 408(d) of the CAMA, 2004 (being the law at the time of transaction, leading to the dispute).
Justice Faji held, “In the instant case, the respondent (Anyiam Osigwe Group) has not said that it has paid the entire sum due. It has not even shown that it has paid the principal sum of N750,000,000. It has only alleged paying N230,000,000.
“Even though a court should not hastily grant a winding up order, where there are strong grounds for doing so, particularly where the dispute as to the debt is not on substantial grounds, the Court will grant a winding up order.
“This Petition has immense merit and ought to and is hereby granted in its entirety.”