Justice Ayokunle Faji, a Federal High Court judge sitting in Lagos, has ordered the winding up of Anyiam Osigwe Group Limited due to its inability to pay a debt of N750 million owed to First Bank of Nigeria Plc since November 2006. The judgment was delivered in suit number FHC/L/CP/925/14, with First Bank of Nigeria (FBN) as petitioner and Anyiam Osigwe Group as respondent. Dr. Kemi Pinheiro, SAN, appeared for FBN, while E. I. Maduabuchi represented the respondent. The bank’s prayer, submitted by Dr. Pinheiro, sought the winding up of Anyiam Osigwe Group pursuant to the Companies and Allied Matters Act.
During the proceedings, the court examined the facts and the parties’ arguments. Justice Faji focused on the sole issue raised in the petitioner’s final written address dated 16 February 2022. He agreed with Dr. Pinheiro that the respondent failed to provide satisfactory evidence to show that the unliquidated debt was disputed, as the respondent claimed. The judge dismissed the respondent’s counsel’s contention that the debt was the subject of another suit (LD/1798/09), noting that the said suit had been struck out and remained unlisted, offering no basis for a dispute over the debt.
The court also rejected the respondent’s claim of solvency and ability to pay. It held that the petitioner had proved, under Section 408(d) of the Companies and Allied Matters Act 2004 (the law applicable at the time of the transaction), that Anyiam Osigwe Group Limited was unable to pay its debt. Justice Faji observed: “In the instant case, the respondent has not said that it has paid the entire sum due. It has not even shown that it has paid the principal sum of N750,000,000. It has only alleged paying N230,000,000. Even though a court should not hastily grant a winding‑up order, where there are strong grounds for doing so, particularly where the dispute as to the debt is not on substantial grounds, the Court will grant a winding‑up order. This petition has immense merit and ought to be granted in its entirety.”
Comments are closed for this story.