A Federal High Court in Lagos has given Skye Bank Plc the legal backing to take over Obat Oil and Petroleum Ltd’s depot over an alleged N2.1billion debt. Justice Jude Dagat asked the Inspector-General of Police, the Assistant Inspector-General of Police 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 Aug. 7, 2015.
Skye Bank had sought to recover a debt of N2. 1billion owed it by Obat Oil and Petroleum. The loan was guaranteed by Oba (Dr.) Frederick 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 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 N1.4billion from the April, 2014, till final liquidation of the amount.
The bank, however, alleged that Obat Oil and Dr 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 leave to enforce the Arbitration Award against the respondents. In compliance with the order, Skye Bank took steps Friday to enforce the Arbitration Award against Obat Oil and Petroleum and Oba Akinruntan.