February 18, (THEWILL) – The Supreme Court, on Friday, nullified the takeover of Best Western Hotel, Ikeja Lagos, by the Asset Management Corporation of Nigeria, AMCO
In a unanimous decision, a five-member panel of the apex court, faulted AMCON’s action, when it confiscated the five-star hotel that was operated by Suru Worldwide Ventures Nigeria Limited, on September 22, 2017, over alleged failure of the company to pay back a loan that was obtained from the defunct Oceanic Bank
In the lead judgement that was delivered by Justice Emmanuel Agim, the apex court panel vacated an order of the Federal High Court in Lagos, which AMCON said empowered it to take over the property.
While upholding an earlier decision of the Court of Appeal in the matter, the Supreme Court, ordered that the case should be returned to the high court and be heard afresh by another judge.
The high court had on the strength of an application that was brought before it by AMCON, ordered security agencies to offer protection to the agency to enable it to exercise its possessory rights over the hotel, as a legal mortgagee under the Deeds of Legal Mortgage.
Dissatisfied with the development, the defendant, Suru Worldwide Ventures Nigeria Limited, took the matter before the appellate court, alleging that it was denied fair hearing since it was not joined as a party in the suit that led to the order.
The appellate court, in its judgement that was delivered by Justice Ugochukwu Ogakwu, held that AMCON’s failure to join the Appellant in the case, rendered the entire proceedings that led to the takeover order, a nullity.
The appellate court directed that the matter should be heard de-novo (afresh) by the high court.
Affirming the verdict on Friday, the Supreme Court halted the takeover of the hotel, even as it dismissed the appeal that AMCON filed before it.
The managing director of Suru Worldwide Ventures Ltd had told THEWILL that AMCON violated its rights and virtually destroyed its business by illegally taking over its hotel in a manner that had brought the company untold hardship and enormous losses.
