A Federal High Court in Lagos has given Skye Bank Plc the legal backing to take over Obat Oil and Petroleum Limited’s depot over an alleged N2.1 billion debt.
Justice Jude Dagat asked the Inspector-General of Police and the Assistant Inspector-General of Police in charge of Zone 2 Command to assist in the enforcement of the order.
The order followed an Originating Motion by the bank seeking the enforcement of an arbitral award dated August 7, 2015.
Skye Bank Plc had sought to recover a debt of N2.1 billion owed it by Obat Oil and Petroleum.
The loan was guaranteed by Oba Frederick Akinruntan, the Olugbo of Ugboland in Ondo State.
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 Dr. Akinruntan appealed for concessions and waivers on the amount of accrued interest.
The Arbitrator had held that it would be fair and equitable to award N1.4 billion to the claimant, which represents the amount the respondents admitted as being outstanding balance as at March 31.
Babalola also awarded 10 per cent interest annually on the N1.4 billion from April 2014 till the final liquidation of the amount.
The bank, however, alleged that Obat Oil and Akinruntan failed to comply with the Arbitration Award.
It applied to the court to order the award’s enforcement.
Granting the application, Justice Dagat made an order granting Skye Bank Plc leave to enforce the Arbitration Award against the respondents.
In compliance with the order, Skye Bank took steps on Friday to enforce the Arbitration Award against Obat Oil and Petroleum and Oba Akinruntan.