The Receiver, Mr. Ade Oyebanji, appointed jointly by First City Monument Bank (FCMB) and First Bank of Nigeria Limited, has provided clarification regarding the disposal of Algrain Foods Limited’s assets. Responding to allegations of illegal asset sale raised in a petition to the Inspector General of Police by Algrain Foods Limited’s counsel, Chief Alloysious Ezenduka, Mr. Oyebanji explained that the banks appointed FCMB Trustees Limited as the Trustee to manage the facilities of Algrain Foods Limited, whose account turned toxic in 2016.
In a statement issued on behalf of both banks, Mr. Oyebanji revealed that he was appointed as the Receiver over all assets and debenture, duly registered with the Corporate Affairs Commission, Abuja. The Receiver obtained a protective interim order of possession in 2017 from the Federal High Court Lagos (Suit No: FHC/L/CS/06/2017). However, in 2020, Algrain Foods Limited and its Director Anthony Obidulu filed a lawsuit against the banks and the Receiver, alleging trespass and seeking N20 billion in damages (Suit No: FHC/L/CS/1764/2020).
Mr. Oyebanji clarified that the Federal High Court dismissed the case on 24 October 2021, deeming it an abuse of the court process. Subsequently, on 3rd November 2021, the Federal High Court delivered a judgment in favor of the Bank and the Receiver in the receivership case (Suit No: FHC/L/CS/06/2017) between CSL Trustees Limited, First City Monument Bank Limited, First Bank of Nigeria Limited, Algrain Foods Limited, and Anthony Obidulu. The court granted all the reliefs sought by the Trustees and the Bank.
(a) A DECLARATION that EMMANUEL ADEYEYE OYEBANJI being the Receiver appointed by the 1st Applicant by virtue of the Deed of All Assets Debenture dated 18th October, 2013 and the Supplemental Deed of All Assets Debenture dated 1st February, 2016 is entitled to remain in possession, continue to manage, superintend and TO SELL the said property by virtue of the provisions of the said Deeds and his Deed of appointment dated November, 2016 without interference, obstruction and / or hindrance in any manner from the Respondents, or their agents, servants and privies in accordance with section 393of CAMA.
(b) AN ORDER authorizing and/or directing the Receiver to RETAIN POSSESSION of the Respondents assets mortgaged to the 1st -3rd Applicants by virtue of the Deed of All Assets Debenture dated 18th October, 2013 and the Supplemental Deed of All Assets Debenture dated 1st February, 2016 during the tenure of his appointment as Receiver.
(c) PERPETUAL INJUNCTION restraining the Respondents their servants, agents, privies, or any other person whatsoever from interfering with, obstructing, disturbing and/or frustrating the Receiver from exercising the powers, duties and functions vested in him or performing his duties as Receiver of the Respondents assets mortgaged to the 1st – 3rd Applicants by virtue of the Deed of All Assets Debenture dated 18th October, 2013 and the Supplemental Deed of All Assets Debenture dated 1st February, 2016
Mr. Oyebanji, SAN, emphasized that the judgment was declaratory, with no appeal or stay of execution filed by Algrain Foods Limited’s counsel until November 9, 2021. He clarified that on November 7, 2021, following the court-authorized sale, the Receiver executed the Power of Sale in accordance with CAMA Schedule II. “The declaratory judgment took effect upon delivery, and as of November 7, 2021, there was no notice of appeal or stay of execution filed by Algrain Foods Limited against the pronouncement made on November 3, 2021,” Oyebanji stated.
Mr. Oyebanji, SAN, highlighted that Algrain Foods Limited, instead of awaiting the appeal outcome, opted for self-help. They engaged law enforcement agents to impede the legal buyer’s use of the property and persistently subjected the Receiver and the bank to law enforcement involvement, attempting to coerce compliance. He firmly emphasized, “It is utterly false and entirely misleading to accuse the Receiver of misappropriating Algrain Foods Limited’s assets. The assets were lawfully disposed of based on the court judgment, and there is no Court of Appeal ruling overturning the Federal High Court’s judgment.”
Furthermore, he asserted that every allegation brought against FCMB and the Receiver before the Police was already rejected by the Federal High Court in its decision on October 24, 2021. He stated, “Hence, the petition submitted to the Inspector General of Police is an improper endeavor to subvert the court’s judgment through unconventional means.”
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