The Federal High Court sitting in Lagos has ruled against the Justice Saliu Saidu earlier order, stating that First Bank Plc. through the receiver, Mr. Emmanuel Oyebanji, takes over the entire assets of Zone 4 Energy, an oil Firm.
While ruling on the case, the judge stated that the third party, Chukelad Nigeria Limited, in trade with Zone 4 Energy, was to evacuate its 2,804,738 liters of Automotive Gas Oil (AGO) and 1,927,727 liters of Dual Purpose Kerosene (DPK) stored in the tank farm belonging to Zone 4 Energy Ltd.
It would be recalled that in July, Justice Saidu permitted FB Plc receiver’s to take over the entire assets of Zone 4 Energy Ltd. at the Calabar Free Trade Zone (CFTZ,) over an alleged debt owed to the bank.
In the ruling, Justice Anka, implied that First Bank can only lay claim to the tank farm and not the content of the tank farm.
The bank receiver had earlier argued that the tank farm and its content are charged assets under the dispute.
In an affidavit, Zone 4 Energy said it had an agreement with Chukelad Nigeria Ltd to use the tank farm to store its AGO and DPK.
Zone 4 Energy said, Chukelad Nigeria Ltd paid it N7million to make use of the tank farm, and the banks receiver took over the assets while Chukelad Nigeria was loading its trucks at the depot.
Justice Anka, ruled in favour of Zone 4 Energy, that the third party goods be evacuated with immediate effect.
The application by Mr. Lanre Ogulis, Zone 4 Energy lawyer, said they had “substantial quantity” of Chkelad Nigeria products in its storage when the banks receivers take over the tank farm.
The prayer of Zone 4 Energy, was thus “in view of the fact that this matter in court might take time to resolve, it would be in the interest of justice to grant this application.
The products are susceptible to market forces and if the price drops, it would be a colossal loss to Chukelad Nigeria, and we would be held liable”.
First Banks receiver opposed the application, which was however overruled by the Chief Judge.
The product in the farm tank is ordered to be evacuated.
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