The Supreme Court has overturned the judgment of the Court of Appeal that authorised the seizure of an oil vessel and its crude oil cargo belonging to General Hydrocarbons Limited (GHL) in a contractual dispute involving the First Bank of Nigeria.
In a unanimous decision delivered by a five-member panel, the apex court ordered that the vessel and the proceeds realised from the sale of its crude oil be returned to GHL, describing the seizure as unlawful.
The court held that the Federal High Court wrongly assumed jurisdiction over the matter, stressing that the dispute was not maritime in nature but centred on a financial and contractual disagreement.
According to the Supreme Court, the case arose from an alleged breach of contract and did not grant First Bank the legal authority to seize GHL’s oil vessel or dispose of its cargo to recover the disputed debt.
Consequently, the apex court nullified the earlier judgments and directed that the vessel and all proceeds from the sale of the crude oil be restored to the company.
The Supreme Court also imposed a ₦5 million cost against the First Bank of Nigeria.
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