Ecobank Bank loses N3.5bn to Honeywell after lawsuit

The Court of Appeal in Lagos on Tuesday, struck out appeals by Ecobank, against a Federal High Court's ruling, over alleged indebtedness of Honeywell Plc.

Ecobank had in January, instituted a suit before the lower court, over an alleged N3.5 billion unpaid loan facility by Honeywell.

The Lower Court Judge, Justice Mohammed Yunusa, had issued an interim order via an exparte application by the bank, restricting Honeywell's financial transaction.

However, the appellate Court had in a judgment delivered on March 30, set aside the exparte orders, describing it as not judicious.

The bank had then filed a motion for injunctions pending appeal.

Meanwhile, Honeywell in reaction also filed a counter affidavit in response to their motions for injunctions.

At the hearing of the appeal on Tuesday, Counsel to the bank, Mr O. O. Kushimo, informed the court of a notice of withdrawal filed by the bank.

This move was not opposed by Counsel to Honeywell, Mr Bode Olanipekun (SAN)

Consequently, the appellate court presided by Justice Sidi Bage struck out Ecobank’s motion for injunction pending appeal in Suit no: CA/L/1247/2015, dated March 31.

The court also struck out the bank's motion for stay of proceedings in Suit no: CA/L/1270/2015, dated April 1; and Suit no: CA/L/65/2016, also dated April 1.

The News Agency of Nigeria (NAN) reports that the Federal High Court had also on June 27, in a judgement delivered by Justice Jude Dagat, in a related case, struck out the bank's suit against Honeywell and its sister companies.

Justice Dagat had noted that a court faced with a winding up application, must first determine if the petition was brought in good faith.

The Judge had held that the bank's petition was done in bad faith and had consequently, struck out the suit.