The planned arraignment of Afex Commodity Exchange and some of its principal officers before a federal high court in Lagos over alleged contempt of court failed on Thursday as the alleged contemnors challenged the jurisdiction of the court to proceed on the matter.
Justice Chukwujekwu Aneke had on May 31, 2024 granted a motion ex parte in Suit FHC/L/CS/911/2024, and cited AFEX and its principal officers for contempt of court following their alleged disobedience to a court order authorising Guaranty Trust (GTBank) to take over the funds and assets belonging to Afex Commodities Exchange following its inability to pay N17,808,452,467.107 (billion) loan facilities granted by the bank.
At the resumed hearing of the matter yesterday, Ade Adedeji, SAN appeared for the Plaintiff, while Prof. Wale Olawoyin, SAN led a team of lawyers for the defendants.
Addressing the Court, Prof. Olawoyin informed the court of a Notice of Preliminary Objection challenging the jurisdiction of the Court to entertain the contempt proceedings initiated against the Afex Commodity Exchange and its Directors for alleged non-compliance with the ex parte interim order of injunction dated 27th May 2024.
He stated that the Notice of Preliminary Objection was brought pursuant to section 36 of the constitution (As Amended) and under the inherent jurisdiction of the court.
Prof. Olawoyin informed the court that the Preliminary Objection had been served on the Plaintiff, and urged the court to give it priority in view of jurisdictional issues raised.
He submitted that when the jurisdiction of the court was being challenged parties in alleged contempt needed not be physically present in court until the issue of jurisdiction was resolved by the court.
Olawoyin stated that the defendants had filed an Affidavit of Fact before the court on the whereabouts of the Directors of Afex Commodity Exchange, and why they were not in court.
However, in his reply, Plaintiff’s counsel, Ade Adedeji argued that contempt proceedings were quasi-criminal, hence all the alleged contemnors must be physically present in court.
He submitted that until the people in contempt appeared in court, they could not be heard through their lawyer.
After taking arguments from both parties, Justice Aneke adjourned the matter till June 27 for continuation of hearing.
In their preliminary objection before the court the defendants are asking the court to either strike out the contempt proceedings or decline jurisdiction to entertain any contempt proceedings in relation to or connected with or arising from the Notice of Disobedience of Court Order (Form 48) dated 31st May, 2024 or any alleged non-compliance with the ex parte order of the Court dated 27th May 2024.
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They argued that the alleged contemptuous act was done outside the precincts of the Court making same, a contempt ex facie curiae.
Recall that Justice Aneke had on May 27 granted an interim Global Standing Instruction, GSI, injunctive relief, following an application moved by GTBank’s counsel Chief Aribisala, SAN.
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-judgement 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-judgement interest on the said sum of N15,766,475,417.06” and “Cost of recovery and incidental expenses in the sum of N2,041,977,050.047.”
It further granted a mandatory injunction commanding the defendant/respondent to allow the plaintiff to appoint its appointed agent to take over the commodities/produce stored by the defendant in the 16 warehouses across the seven states.
The court also directed the police and Civil Defence Corp to assist GTBank in securing and dealing with the commodities/produce stored by the defendant in the 16 warehouses across the seven states
GTBank is the sole plaintiff/applicant in the suit marked FHC/L/CS/911/2024, Afex Commodities Exchange is the defendant/respondent, 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 necessitating the Plaintiff to file Form 48, and Form 49 against the defendants.
