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The Federal High Court in Lagos has scheduled June 27, 2024, for further proceedings in the contempt case brought by Guaranty Trust Bank Plc against the directors of AFEX Exchange Commodities Limited over a N17.81bn loan.
Justice Chukwujekwu Aneke set the date after hearing arguments from the plaintiff's lead counsel, Mr. Ade Adedeji (SAN), and the respondent/defendant counsel, Prof Olawoyin (SAN), regarding the alleged disobedience to a court order by the commodities' exchange directors.
The plaintiff, Guaranty Trust Bank Limited, filed a suit numbered FHC/L/CS/911/2024 against AFEX Exchange Commodities Limited and its five directors over a N17bn loan obtained under the Anchor Borrowers program of the Central Bank of Nigeria.
The alleged contemnors include; Ayodele Balogun, Jendayi Fraaser, Justin Topilow, Mobolaji Adeoye, and Koonal Ghandi.
During the last hearing, the court ordered the contemnors who were absent to appear and issued form 49 to be served on them via newspaper publication.
However, during the latest proceedings, GTB's lead counsel, Adedeji, informed the court that one of the two contempt proceedings pending before the court is ready for hearing, while the other is not.
He stated that the contempt against the respondent's five directors (AFEX Exchange Commodities Limited) is ready for hearing, while the contempt against the bank directors is not yet ready.
The banks and their directors, who were charged with contempt, were all represented by their lawyers in court on Thursday, but the accused individuals were not present.
Adedeji argued that by not appearing, the directors of AFEX were defying a court order. He stated, "Your honor, the parties accused of contempt are not present in court.
The individuals in contempt cannot stay at home and send a lawyer to represent them in contempt proceedings.
It is a well-established legal principle that they must personally appear before the court."
In his statement, Olawoyin mentioned that he was briefed about the situation on Tuesday and was not aware of the earlier events.
He explained that he sought the court's assistance to locate the contemnor. The individuals listed as directors in the case are no longer associated with the company. Currently, there are only three directors, one of whom, Mr. Akinyinka, is present in court, while the other is on a Hajj pilgrimage.
Olawoyin emphasized his respect for the court and expressed the need to gather accurate information. He requested an opportunity for adjournment.
On the other hand, Citibank's lawyers requested the court to release their client, but Justice Aneke insisted that she must appear on the next adjourned date.
Aribisala previously informed the court that contempt proceedings take precedence over other applications.
He argued that those accused of contempt still have a responsibility to explain why they should not be punished.
On May 27, Justice Aneke granted an interim Global Standing Instruction injunctive relief following an application by Aribisala on behalf of GTB.
This was intended to help banks recover outstanding loans from chronic debtors. The ruling directed more than 20 banks to transfer funds to AFEX's account with GTB until the N17.81bn loan is repaid.
This amount includes the outstanding loan of N15.77bn as of April 17, 2024, along with recovery costs and other expenses totaling N2.04bn. Additionally, the court granted an injunction allowing GTB to take over AFEX's 16 warehouses across seven states and sell the stored commodities.
