Justice Jude Dagat of a Federal High Court in Lagos has directed Skye Bank Plc to take over the depot of Obat Oil and Petroleum Limited over an alleged N2.1 billion debt. Besides, the judge also directed the Inspector-General of Police, the Assistant Inspector- General of Police, the Lagos State Commissioner of Police as well as the court’s Deputy Sheriff to assist in the enforcement of the order.
The order was sequel to an originating motion by Skye Bank seeking the enforcement of an arbitral award dated August 7, 2015. The bank had sought to recover a loan of N2, 142,462,572.26 from Obat Oil and Petroleum.
The loan was said to have been guaranteed by Oba (Dr.) Frederick Eniti Akinruntan. The bank further sought to recover 15 per cent interest on the amount from April 2014 till the liquidation of the debt.
The case was taken before an arbitrator, Aare Afe Babalola (SAN), during which Obat Oil and Akinruntan appealed for concessions and waivers on the amount of accrued interest, fees and commissions.
After the arbitration, the Arbitrator held that it would be fair and equitable to award N1, 406,944,352.76 to the claimant, which represents the amount the respondents admitted as being the outstanding balance as at March 31, 2014. Babalola also awarded 10 per cent interest annually on the N1.4billion from the April 1l, 2014, till final liquidation of the debt.
The bank, however, alleged that Obat Oil and Dr Akinruntan failed to comply with the Arbitration Award and consequently applied to the court to order the award’s enforcement. Granting the application, Justice Dagat, made an order granting Skye Bank leave to enforce the Arbitration Award against the respondents.
In compliance with the order, Skye Bank yesterday proceeded to enforce the Arbitration Award against the oil firm and Oba Akinruntan. The oil firm’s depot situated at Oba F.E.O. Akinruntan Close, Beachland Estate, Apapa, Lagos, was sealed up yesterday pending liquidation of the debt.