The Federal High Court in Lagos has fixed April 29, 2026, to hear all processes connected to a winding-up case filed by Shell East Staff Investment Cooperative Society Limited against a real estate firm, Femab Properties Limited, over an alleged outstanding N96 million debt.
Nairametrics gathered that Justice Deinde Isaac Dipeolu rescheduled the hearing on pending applications to April 29 on Wednesday.
Femab Properties Limited is a Nigerian-based real estate development and investment company, while Shell East Staff Investment Cooperative Society Ltd (CoopEast) is a registered cooperative society that serves its members who are employees and retirees of Shell Companies in Nigeria through commodity sales, housing schemes, among others.
Both parties are embroiled in a contractual dispute tied to a previous N850 million obligation connected to a land purchase for the proposed Shell Estate Development at Oniru, Lagos State, Nigeria.
What They Are Saying
At the resumed proceedings on Wednesday, the legal teams for both parties were present.
Justice Deinde Isaac Dipeolu held that, in view of the court’s docket being filled with pending judgments and rulings, other contentious matters, including the instant winding-up case and associated processes, stand adjourned for hearing until April 29.
- According to Shell East Staff Investment Cooperative Society Limited’s processes seen by Nairametrics and filed by its lawyer, Chris Ekemezie, he sought “an order granting leave to the applicant to advertise the winding-up petition by one insertion in two national daily newspapers circulating in Nigeria and in Lagos State, where the respondent (Femab) has its head office, in compliance with the Companies Winding-Up Rules 2001.”
He argued that, by virtue of Order 19 of the Companies Winding-Up Rules 2001, the court has the power to make an order for advertisement to wind up the respondent.
- The lawyer attached enrolled orders of the Courts in Rivers and Lagos, which awarded the claimant (Shell East) the sum of N96,000,000.00, being the balance of the total sum of N850,000,000.00 due and payable by the defendant (Femab) to the claimant for the purchase of land for the proposed Shell Estate Development at Oniru, Lagos State, Nigeria.
- Post-judgment interest was also awarded at the rate of 20% per annum until full liquidation at the time (2019 and 2025).
- The lawyer argued that the applicant made several demands to the respondent to pay its debt.
He added, however, notwithstanding that the 21 days allowed by the Companies and Allied Matters Act had long elapsed, the respondent was unable to pay its debt, thus necessitating this winding-up petition.
- He urged the court to wind up the respondent, which, according to him, is allegedly “insolvent and unable to pay its debts.”
However, in their counter-affidavit seen by Nairametrics, Ajibade Alimat, a litigation officer for Femab, confirmed that on October 28, 2015, the petitioner/respondent executed a Property Development Agreement for the construction of a fixed development of a residential housing estate and supporting infrastructure in Lagos.
The official maintained that the respondent is not indebted and cannot be said to be indebted to the petitioner.
- She added that there is no evidence that the respondent is insolvent, stating that “the issue between the petitioner and the respondent centers on breach of agreement by the petitioner, which culminated in a situation where interest on an unutilized bank loan of N96,000,000.00 was deducted from the initial deposit.”
- She further stated that on March 19, 2021, the respondent raised a bank draft of N10 million in favour of the petitioner, “while further payments to the petitioner are still being negotiated to share the interest rate amount of N96,000,000.00 equally with the respondent, as the payment was brought about by the non-utilization of the loan facility granted by a commercial bank.”
She urged the court to decline approving the winding-up of the respondent, as her client would be greatly prejudiced by the grant of the application.
All other pending applications by the parties will be heard on the next adjourned date.
What You Should Know
Recall that the Federal High Court headquarters in 2015 announced the creation of an “Insolvency Unit” for the court, aimed at addressing the implementation of laws relating to company restructuring and dissolution in Nigeria.
According to the court, the laws relate to “Company Voluntary Arrangements (CVA), Administration, Receivership, Winding Up (Dissolution), and various forms of restructuring of companies” in Nigeria.
- The unit was created following approval by the Chief Judge of the Federal High Court, Justice John Terhemba Tsoho.
- The creation of this unit was said to be pursuant to the provisions of the Companies and Allied Matters Act, 2020; the Asset Management Corporation of Nigeria (AMCON) Act, 2019 (as amended); the Nigeria Deposit Insurance Corporation (NDIC) Act, 2024; and the Bankruptcy Act, Laws of the Federation of Nigeria, 2010.
- The court’s registry stressed that the functions of the Insolvency Unit are to oversee the effective implementation of the provisions of the above enactments as they relate to Company Voluntary Arrangements (CVA), Administration, Receivership, Winding Up, and various forms of restructuring of companies.
The Federal High Court has jurisdiction to determine whether a company is insolvent or not.
Recall that in December 2025, in a bid to escape liquidation following a recent order of the Federal High Court, Abuja, Dantata & Sawoe Construction Company Limited hurriedly paid in full the $1.4 million settlement agreement covering a $1,257,592.83 debt owed to Zutari Consulting Nigeria Ltd for subcontract work on the Dangote Fertilizer Plant project in Lekki, Lagos.
