Court strikes out Ecobank’s petition to wind up Honeywell

Ecobank HQ

A Federal High Court sitting in Lagos and presided over by Justice Jude K. Dagat on Monday struck out the application by Ecobank Nigeria Plc seeking to wind-up Honeywell and its sister company, Anchorage Leisures Limited, for abuse of court process.

The business of the court on Monday was to hear pending applications in suits: FHC/L/CS/1571/15 Ecobank v. Honeywell Group Limited and FHC/L/CS/1570/15 Ecobank v Anchorage Leisures Limited which were the petitions for winding–up filed by Ecobank against Honeywell and Anchorage Leisures on the 16th October, 2015.

Addressing the court, Justice Dagat noted that a court faced with winding up application, must first determine if the petition was brought in good faith. According to him, Ecobank knew that Honeywell was challenging the alleged debt and had instituted a matter before Justice Idris, who had ruled that parties maintain status quo ante bellum. Despite the orders, Ecobank started its forum shopping by filing winding up petitions instead of recovery of the alleged debt. The fact of the case is that Honeywell had made payments to the tune of N3.5 Billion as full and final payment pursuant to the agreement of 22nd July 2014 by the parties.

Justice Dagat stated that since the matter pending before Justice Idris is premised on the same facts as this petition, there is an established abuse of the orders of Justice Idris regarding maintenance of status quo ante bellum. Justice Dagat further held that the matter before Justice Idris is first in time, therefore the subsequent petition by Ecobank constitutes an abuse of court process.

The court held that Ecobank’s petition is aimed at overreaching the powers of the Federal High court in the suit before Justice Idris. According to Justice Dagat, ‘’the Supreme Court has made it clear that it would amount to a travesty of justice for …Read More

Source:: PM Newspaper