The Federal High Court sitting in Abuja has granted Dantata & Sawoe Construction Company Limited a final adjournment to settle issues concerning the alleged $1,257,592.83 debt owed to Zutari Consulting Nigeria Ltd following subcontract work on the Dangote Fertilizer Plant project in Lekki, Lagos, Nigeria.
Justice Inyang Ekwo fixed January 21, 2025, as the last adjournment for a report on the settlement on Monday, months after he approved the placement of a winding-up petition advertisement against Dantata in a motion on notice filed by Zutari Consulting Nigeria Ltd (the petitioner) in Suit No: FHC/ABJ/PET/3/2023.
The petitioner is involved in engineering designs, consulting, and supervision of engineering works, while Dantata & Sawoe is a leading general construction company in Nigeria with over 40 years of working experience.
● Petitioner and respondent claims and counterclaims
The petitioner’s lawyer, Chris Ekemezie, submitted that their client was engaged by the respondent in 2015 for design work related to the respondent’s subcontract at the Dangote Fertilizer Plant project in Lekki, Lagos, Nigeria.
He contended that after the petitioner completed its work, Dantata & Sawoe allegedly became indebted to it in the sum of: “a. $1,257,592.83, ZAR 2,136,623.39, and £4,364.38.”
He argued that due to the respondent’s failure to pay the petitioner the outstanding amount, a dispute arose between the parties, and when they could not resolve it themselves, the petitioner submitted the dispute to the International Chamber of Commerce for arbitration.
The petitioner stated that arbitration was held in London, United Kingdom, and a final arbitral award was made by the arbitration tribunal on April 7, 2021, finding that the respondent is liable to the applicant for the stated debts.
The petitioner then filed a motion seeking the court’s permission to place its wind-up petition against Dantata in national dailies in the interest of justice, pending the final decision of its main suit.
In a notice of preliminary objection filed on May 9, 2023, Dantata’s legal team urged the court to strike out the petition.
Dantata & Sawoe’s legal team argued that the conditions under which the petitioner seeks to wind up their client are completely lacking in merit.
In an affidavit deposed on May 9, 2023, Sherwin Cayabyab, an employee of the respondent, denied the indebtedness claimed by the petitioner.
He admitted that his company engaged the services of the petitioner for a subcontract at the Dangote Fertilizer Plant for the sum of N162,000,000.00 and that payment had been made.
However, he explained that the subcontract was varied, as agreed by the petitioner, the respondent, and Saipem (Dangote).
He acknowledged the existence of the arbitral award in favour of the petitioner/respondent.
Ruling on their applications in July 2024, Justice Inyang Ekwo stated that Dantata’s objection was made against the substantive matter and not against the motion on notice to advertise the petition.
He noted that, contrary to Dantata & Sawoe’s submission, the law allows a winding-up petition to proceed despite the pendency of other processes, as all that is required for the petition to succeed is that the respondent owes the petitioner a debt of N200,000 and above.
Ekwo “found evidence of the respondent’s indebtedness (Dantata and Sawoe)” and granted the motion to place the wind-up petition in two national dailies.
At the last sitting, Dantata’s lawyer, Uchenna Njoku SAN, noted that following the Court’s ruling, they had filed a notice of appeal and an application for a stay of proceedings.
Njoku also added that there are ongoing discussions regarding settlement, requesting that the court adjourn for thirty days for the parties to settle.
The application for adjournment was granted.
At the resumed sitting on Monday, Chris Ekemezie told the court that on the last adjourned date, it granted the respondent’s application for adjournment for one month so they could settle with his client.
“Unfortunately, the parties have not met until today, and no steps have been taken. We have an application before your lordship. If your lordship grants us leave, we are ready to proceed,” he said.
Njoku responded that he spoke with Ekemezie at the level of counsel to counsel, adding that while the parties have not met, steps are being taken in that regard (of settlement).
“We are also guided by the presentation we have made before your lordship that we consider this a case that can be settled,” he said.
Ekwo held that the last adjournment was at the instance of the respondent, and today’s adjournment was also at their instance, stating, “That means you are the one disrupting my proceedings. I am going to fine you.”
Ekwo warned that if the respondent comes up with the same line of submission on the next date, he will impose a fine on them.
Ekemezie said his client’s sole interest is for the respondent to settle its debt as outlined by international arbitration.
Ruling, Ekwo granted the application for adjournment, saying, “However, this shall be the last adjournment granted to the respondent on this matter. The case is adjourned to January 21, 2025.”
Ekwo also ordered Dantata & Sawoe’s lawyer to pay a fine of N100,000 to the court for disrupting today’s proceedings.
Nairametrics reports that the Federal High Court has jurisdiction to preside over transactions involving the parties. [Nairametrics]
