Union Bank Nigeria Plc has been granted a Mareva Injunction by a Federal High Court sitting in Lagos to seize a landed property belonging to A-Z Petroleum Limited over an N5.2 billion loan default.
The court order was given by Justice Chuka Obiozor following the suit which was filed by both Union Bank’s lawyer, Mr Temiloluwa Adamolekun, and Mr Gbenga Akinde-Peters; the manager appointed over the property.
Union Bank, through its legal counsel, had reportedly asked the court to grant Mr Akinde-Peters (the second plaintiff) an interim order of possession over A-Z Petroleum’s property in recognition of a duly registered tripartite deed of legal mortgage which was signed in 2010.
Justice Obiozor granted the Mareva Injunction after evidence was made available to its effect, thereby ordering the bank and its appointed receiver to take over the property which is located at Plot 3508 Cadastral Zone A06, Maitama District, Abuja.
“In the light of the application for Mareva order, with affidavit in support and written address and submission of the counsel, the application is succeed and hereby granted. The order granted is to last pending the hearing and determination of the substantive suit”. – Justice Obiozor
In light of this development, the oil company and its Board Members, employees and every one of its representative that are privy to its affairs are prohibited from interfering, meddling or preventing the receiver from exercising the powers conferred on him by the court over the landed property.
In the same vein, the plaintiff also asked the court for an order that would prevent the Debt Management Office (DMO), the Accountant General of the Federation (AGF), the Central Bank of Nigeria (CBN), the Federal Ministry of Finance and the Petroleum Products Pricing Regulatory Agency (PPRA) from releasing any A-Z Petroleum funds in their custody (to the tune of N5.2 billion) pending the outcome of the suit.
A-Z Petroleum Product Limited had maintained a banking relationship with Union Bank of Nigeria Plc, during which time the oil company received billions-worth of credit facilities to facilitate its business.