Court of Appeal rules in favour of Honeywell

The Court of Appeal, Lagos has dismissed an ex-parte order granted against Honeywell Flour Mills Plc in favour of Ecobank Nigerian Plc.

Justice Mohammed Yunusa of the Federal High Court in Lagos had last December 4 frozen Honeywell’s accounts following an application by Ecobank.

The judge later varied the order by allowing Honeywell to withdraw N15million per week pending hearing of the suit.

Honeywell thereafter proceeded to the Court of Appeal seeking to set aside the exparte order.

The Court of Appeal, in a judgment delivered by Justice Abimbola Obaseki, set aside the ruling of Justice Yunusa on the ground of abuse of Order 4 of winding up rules.

The Order states that every application in court other than a petition, shall be made by motion, notice of which shall be served on every person against whom an order is sought not less than five days before the day named in the notice for hearing the motion.

In a related case, the cross-appeal by Ecobank against the ruling of Justice Yunusa which granted limited access to Honeywell to operate its accounts was also struck out.

The second appeal by Ecobank against Honeywell, challenging the jurisdiction of Justice Mohammed Idris of the Federal High Court in establishing a customer banker’s relationship, was also struck out.

The Court of Appeal stated that there is a banker-customer relationship between the parties.

Justice Obaseki held that Ecobank’s appeal lacks merit and stands dismissed.

“The ruling of Mohammed Idris of the Federal High Court in favour of Honeywell is hereby affirmed,” the justice held.