NNPCL’s Failure To File Counter Affidavit Halts Araraume’s N100bn Suit Against FG

Admin II
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The failure of the Nigerian National Petroleum Company (NNPC) to file a counter affidavit in the N100 billion suit filed by Senator Ifeanyi Araraume against the Federal Government, has stalled the hearing of the suit at the Federal High Court sitting in Abuja.

Araraume had instituted the suit against the Federal Government challenging his unlawful removal as the Chairman of the Board of NNPC after using his name to register the company at the Corporate Affairs Commission (CAC).

At the resumed hearing on Wednesday, January 11, 2023, counsel to NNPC, Mr Etigwe Uwa SAN, told the court that he filed only a preliminary objection to the hearing of the suit which was contrary to the order made by the court at the last adjourned date.

Uwa said that he had not filed a counter affidavit to the substantive suit and prayed the court to proceed with hearing of his preliminary objection and determine it one way or another before hearing the main suit.

But, the trial judge, Justice Inyang Ekwo, drew the lawyer’s attention to the practice direction of the court, stressing that both the substantive matter and any preliminary objection must be taken together in order to save the judicial time of the court.

Accordingly, Justice Inyang held that he would not hear the preliminary objection alone until the counter affidavit to the substantive suit was filed.

In the words of Justice Inyang; “Let me give the NNPC legal team, the opportunity to file a counter affidavit to enable me to look at the matter holistically. When I see the calibre of counsels in a matter like this, my belief is that there will be an exposition of jurisprudence to develop the law,” Justice Ekwo told the plaintiff’s legal team led by Chief Chris Uche SAN.

Justice Inyang noted that Konyin Ajayi SAN, is an expert in Company Law and Etigwe Uwa SAN is a brilliant learned silk.

Earlier, Counsel to Senator Araraume, Chief Chris Uche SAN, reminded the judge that he had made an order that all processes must be filed and exchanged by parties before Wednesday’s sitting and therefore prayed the court to proceed with hearing of the substantive suit as had been ordered at the last adjourned date.

The trial judge however, said that he would give the NNPC another opportunity to file the counter affidavit and adjourned the matter until January 23, 2023 for hearing.

Senator Araraume filed a N100 billion suit against the Federal Government over his alleged unlawful removal as a non-Executive Chairman of the newly-incorporated NNPC.

Araraume is asking for N100 billion as damages caused him in the alleged unlawful and unconstitutional way and manner he was removed from the NNPC board after using his name to incorporate the entity.

In the suit marked, FHC/ABJ/CS/691/2022, Ararume formulated four issues for determination by the court which include whether in view of the provisions of the Memorandum and Articles of Association of the NNPC, Companies and Allied Matters Act 2010 and the Petroleum Industry Act 2021, the office of the non-Executive chairman was not governed and regulated by the stated provisions of the law.

The plaintiff is also asking the court to determine whether by the interpretation of Section 63 (3) of the Petroleum Industry Act 2021, the president could lawfully remove him as a non-Executive chairman of the NNPCL for any reason outside the provisions of the law.

Ararume is also asking the court to determine whether the president could sack him without compliance with expressly stated provisions of the Articles of Memorandum of Association of the Company, Section 63 (3) of the PI Act 2021 and Section 288 of the CAMA Act 2020.

He further asked the court for an order setting aside his removal via a letter of Jan. 17, 2022 with reference number SGF.3V111/86 as well as asked the court for an order reinstating him and restoring him to office with all the rights and privileges of the office of the NNPC non-Executive chairman.

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