By Onyewuchi Ojinnaka
A Federal High Court sitting in Lagos Nigeria has entered judgement in favour of Sterling Bank Plc jointly and severally against the former Aviation Minister Senator Stella Oduah and her company Sea Petroleum and Gas Limited in the sums of $16,412,819.06 and N100,493,225.59 respectively.
According to the judgement delivered by Justice Ayotunde Faji, the sum being the outstanding debt owed to the bank together with accrued interest as at November 2016 by Sea Petroleum and Gas company which was duly guaranteed by Senator Stella Oduah.
In the judgement, Justice Faji while granting six reliefs out of the fourteen reliefs sought by the bank, issued order of attachment in favour of the bank against such entire assets of Sea Petroleum and Gas company, cash in bank, bond, deposit, real estate, stocks, all forms of negotiable instruments in all stock broking firms, discount houses,mortgage institutions, financial houses, microfinance houses, and all licensed banks within Nigeria having Sea Petroleum as beneficial owner funds to the full extent of the unsatisfied portion of the sum of $16,,412,819.06 and N100,493,225.59 respectively as at November 2016 and other accrued interest.
The court also declared that having regard to the clear and unambiguous provisions of the deed of guarantee and indemnity personally executed by Senator Stella Oduah in favour of Sterling bank over facility advanced to the Sea Petroleum and Gas company Limited, has failed upon demands to liquidate same.
Judgement can therefore be granted against Senator Stella Oduah for the unsatisfied portion of the sum owed by Sea Petroleum and Gas company to the bank.
The judgement of the court was sequel to a debt recovery suit filed before the court by a Lagos lawyer Oluwakemi Balogun (SAN) on behalf of Sterling bank Plc .
In an affidavit sworn to by the Business Manager Maritime, Sterling bank Plc, Mr Segun Akinsanya, with 34 exhibits attached, filed and argued before the court by Mr Balogun (SAN), Akinsanya averred that on October 8, 2012, the bank granted a lease /cabotage vessel finance facility to Sea Petroleum and Gas Company in the sum of $10,069,620.25 to finance one unit 5,000 MT tanker vessel.
The loan was secured by unconditional personal guarantee of the company director, Princess Stella Oduah supported by statement of her networth, legal mortgage of two properties worth N135 million, power of Attorneys of the tanker vessel in favour of Sterling Bank and fully executed irrevocable, standing payment order and tripatite remmitance agreement between First Bank plc, Sterling Bank and Stella Oduah.
It was further averred that about June 27, 2013 Sea petroleum company requested for and was granted additional facilities in the sum of $449,600.00 for post delivery expences, $642,954.00 and $350,000 to meet the requisite conditions in securing the release of the tanker.
Consequent upon the persistent failure of the defendants to liquidate their indebtedness Sterling Bank instructed the law firm of Oluwakemi Balogun to recover the debt.
Despite several reminders, demands, pleas and persuasions emanating from the bank and its solicitor, the defendants failed and refused to liquidate their indebtedness which has culminated in the sum of $16,412,819.06 and N100,493,225.59 as at November 2016.
Consequently, the bank urged the court to enter judgement in its favour as per its claim.
However ,in her counter affidavit, Senator Stella Oduah, contended that, the Vessel purchased with the loan facility was registered in the name of Sterling Bank until the defendant discharges the facility.
Oduah argued that the non payment of the loan was thus occasions by the bank’s inaction,submitting that it would be unjust to impose on the company the liability occasioned by the bank’s inaction.
The impossibility of performance is a defence to claim for specific performance. Where a Plaintiff defaults in his obligation under an agreement he cannot succeed in an action for specific performance.
Consequently, the defendants urged the court to refuse the claim of the bank, pointing out that the bank was expected to sell the properties pledged, title documents to which are in the bank’s custody. It is only after then that it will be clear who is indebted to who.
But in his judgement, Justice Faji said,” The defendant by letter dated 6/2/15 acknowledged it’s indebtedness. This is part of Plaintiff’s case to show that the debt is not disputed. The dependant did not comply with the repayment under the various facilities. The Sea Petroleum and Gas limited statement of account for the period 1/9/12 to 24/11/16 shows a debt balance of $16,412,819.06 and Naira debit balance of N100,493225.59.
“As regard Sea Petroleum therefore, it is clear that the company was all material time indebted to Sterling Bank. Stella Oduah guaranteed the indebtedness and issue a guarantee and indemnity. The bank was to have a lien upon the immediate right of set-off against Stella Oduah whether on any current, deposit, domiciliary, or other accounts and assets.
“I do not see any defence to this claim by Sea Petroleum and Gas company, As regards Stella Oduah, having guaranteed the loan and given an indemnity, she is equally liable with the company to pay the debt.
“I grant reliefs 1-6 in so far as they relate to the assets of Senator Stella Oduah and Sea Petrol and Gas company limited within Nigeria”, the judge ruled.