Ecobank Asks Court to Order Sale of Obat’s Abuja Hotel to Offset N5bn Debt

Ecobank Plc has asked the High Court of the Federal Capital
Territory in Jabi, Abuja, to authorise it to sell an Abuja hotel
belonging to Obat Oil and Petroleum Limited to offset a N5billion
debt its being owed by the firm.

The bank noted in its motion on notice filed on October 18,
2019, that it and Obat Oil, owned by a well-known monarch, the
Olugbo of Ugboland in Ilaje Local Government Area of Ondo State,
Oba Fedrick Akinruntan, had entered into an agreement that N5
billion debt was to be realised from the sale of the hotel.

It said the agreement to sell the property, Febson Hotels &
Malls, said to be located at Plot 2425, Herbert Macaulay Way,
Abuja, to liquidate the debt was adopted as a consent judgment of
the High Court of Lagos State on March 15, 2017.

The bank, through its lead counsel, Mr. Kunle Ogunba (SAN),
noted that the consent judgment obtained from the Lagos State High
Court had been registered before the FCT High Court on February 7,
2019, in order for the judgment to be enforceable in Abuja where
the property meant for sale is located.

It said despite the consent judgment and the registration of the
judgment, Obat Oil had prevented potential buyers from paying for
the said property by demanding unrealistic amounts for the sale of
the property.

An affidavit filed in support of the bank’s application stated,
“That since March 15, 2017 when the consent judgment was entered,
wherein the parties agreed to sell the said property towards
repaying the judgment debt, the judgment debtor has remained in
exclusive control/possession of the property, the debtor has
continued to collect rents and various revenues being generated on
the property.

“That due to the benefits it is reaping from the said property,
the judgment debtor has refused and/or shown any serious interest
in the sale of the property, contrary to the agreement of the
parties as contained as contained in the consent judgment.

“That the property known as Febson Hotels & Malls, at Plot
2425, Herbert Macaulay Way, Abuja, belongs to the judgment debtor,
prompting the agreement of the parties to sell the said property
towards liquidating the judgment sum.”

But Obat Oil, has through its lead counsel, Mr. Olalekan Ojo
(SAN), asked the court to dismiss the bank’s application.

The firm’s counter-affidavit was anchored on a letter dated
April 5, 2017, in which it contended that the bank had assigned its
rights and interest in the N5 billion judgment debt to ETI
Specialised Finance Company Limited.

“That the applicant did not disclose to the honourable court the
fact that it had assigned the judgment debt to ETI Specialised
Finance Company Limited and informed the respondent of the said
assignment,” the firm stated in a counter-affidavit to Ecobank’s
application.

It said by virtue of the alleged concealment of the assignment
of its rights to the judgment debt to ETI Specialised Finance
Company Limited, the bank, “no longer had any right or interest in
the judgment debt sought to be enforced before the honourable
court”.

The matter came up before Justice H.B Babangida on Tuesday, when
Ogunba, the applicant’s lawyer insisted that both ETI Specialised
Finance Company and Ecobank were one and the same.

The matter was adjourned till November 18, for hearing after
Obat Oil’s lawyer, Ojo, insisted that Ogunba should not be allowed
to reference his counter-affidavit and written address since the
bank’s lawyer had chosen not to file a reaction to them.

Ogunba informed the court that he would file a reply on points
of law before the next date.

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