By Onyewuchi Ojinnaka
The cordial business relationship which existed over the years between two limited liability companies; Tata Africa Services Limited and Jasper Biochemicals and Allied Products Limited, has gone sour and degenerated to legal hostility over a disputed debt.
In a suit filed before a Lagos High Court sitting at Ikeja South West Nigeria, Tata Africa services Limited (claimant) is claiming the sum of N39,088,877 from Jasper Biochemicals Company (defendant) being the money allegedly owed it for the purchase of Industrial and food chemicals.
On the other hand, Jasper Biochemicals Company is counter claiming the sum of N60,371,110 in breach of contract of sale of expired, inferior and substandard chemicals; N20 million for breach of contract, N23,286,048 as outstanding rent of its warehouse and cost of repairing the warehouse.
In its statement of claim filed before the court by Metrocrest Legal practitioners, the claimant Tata Africa Services alleged that by a local purchase order dated September 3, 2018, the defendant, Jasper Biochemicals purchased some industrial and food chemicals from the claimant company worth N44,352,357.59, but only paid marginal part of the purchased sum, leaving an outstanding balance of N39,088,877.
The claimant averred that it has demanded for the payment of the outstanding debt from the defendant but the defendant remained adamant and refused to pay up the outstanding debt.
Consequently, the claimant is claiming from the defendant: “An order asking the defendant pay the claimant the total sum of N39,088,877 being the outstanding sum owed the claimant by the defendant for the purchase of Industrial and food chemicals from the Claimant.
“Interest on the said sum at the agreed rate of 2 percent per month from the 3rd of September, 2018 until Judgement is delivered and thereafter at the rate of 10 percent until final liquidation.
However, in a statement of defence and counter claim accompanied by witness statement on oath of the Managing Director/Chief Executive Officer of Jasper Biochemicals and Allied Products Ltd, Dr Emmanuel Okworigho and filed before the court by a Lagos Lawyer, Barrister Frank Eke, the defendant Company while denying almost all the claims of Tata Africa Services, averred that on the 20th of August, 2018 Tata Africa Services in the process of closing down its chemical division and planning to give up its rented warehouse, was desperately looking for outlets to dispose off the industrial and food chemicals, knowing fully well that the majority of its products had expired, while the remaining few others were near expiration dates of less than 2 to 3 months,and was trying to avoid heavy punitive sanctions from NAFDAC for selling expired industrial food to the public
It averred that the claimant requested Jasper Biochemicals as a trusted and reliable Company for help to evacuate the last batch of unsold expired and nearly expired chemicals to enable the claimant invoice the expired goods for the purpose of evacuation into the defendant warehouse.
And also to enable the defendant dispose them on behalf of the claimant and due to the fact that the claimant was paying heavily for rented warehouses.
At the instant request, the Claimant’s chemicals were kept in the defendant’s warehouse, therefore at no time did he acceeded to the indebtedness of N39,088,877.00, or any amount whatsoever because as at the time the Claimant was closing its chemical business, the transaction claimant allegedly had with the defendant’s credit line had also expired.
The local purchase order for the goods was not addressed to the defendant and no contract was envisaged with the claimant.
Dr Okworigho averred further that, N10 million was paid into the Claimant’s account by his company for the quantity of chemicals the defendant was able to dispose off. He added that in the course of chemical business and in situation where goods were found to be substandard or expired, such goods would be returned to the claimant as a rule of chemical business.
When the claimant was invited to come and take stock of the balance of their chemicals, the Claimant refused but opted for payment, and by that time there was no known warehouse to return the chemicals which are highly hazardous to Human consumption having closed and given up her warehouse.
Consequently, by way of counter-claim, the Jasper Biochemicals and Allied Products Limited counter -claims against Tata Africa Services (Nigeria) Limited as follows:
“A declaration that Tata Africa is in breach of sale of chemical products of merchantable quality in the sum of N60,371,110 being the cost of chemical purchased in cash from the company which are expired, inferior and substandard.
“The sum of 17,286,000 being the cost to repair Jasper Biochemicals warehouse which damage was caused as a result of expired chemicals stored in the warehouse.
N6,000,048 being the outstanding unpaid rent of the warehouse.
“Damages in the sum of N20 million for breach of contract arising from the loss in cured as a result of sale of unfit and unsellable bad stock of food and industrial chemical Products which were returned by costumers as unsold.
Meanwhile,the presiding Judge, Lateefat Folami has adjourned till April, 15, 2021 for commencement of hearing of the matter.
