N17bn debt: Court hears GTB’s applications against Afex Exchange July 8

A Federal High Court sitting in Lagos has fixed July 8, 2024, for the hearing of all pending applications in a contempt suit initiated by the Guarantee Trust Bank (GTB) Limited against the Directors of the Afex Exchange Commodities Limited over alleged N17,808,452,467.107 loan indebtedness.

Justice Chukwujekwu Aneke fixed the date after hearing the arguments and submissions of counsel for the plaintiff, Ade Adedeji (SAN), and counsel for the respondent/defendant,  Prof. Wale Olawoyin (SAN).

The judge had, on May 31, 2024, granted a motion ex parte in Suit FHC/L/CS/911/2024, and cited Afex and its principal officers for contempt of court following their alleged disobedience to a court order authorising GTB to take over the funds and assets belonging to Afex following its inability to pay N17.8 billion loan facilities granted by the bank.

The alleged contemnors are Ayodeji Olaleye Balogun, Jendayi Fraaser, Justin Lee Topilow, Mobolaji Oluwatomi Adeoye, and Koonal Bharat Ghandi.

However, at the resumed hearing of proceedings on Thursday, June 27, Adedeji urged the court to discharge 19 banks that have shown cause that the judgement debtor has no account with them.

Subsequently, the judge struck out the names of Citi Bank, Fidelity Bank, Wema Bank, Standard Trust Bank, Union Bank, Keystone Bank, Signature Bank, Titan Trust Bank, Unity Bank, Parallex Bank, Jaiz Bank, Lotus Bank, Providus Bank, Standard Chartered Bank Nigeria, Suntrust Bank, Polaris Bank, Eco Bank, Heritage Bank, and Unity Bank Plc.

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Adedeji, thereafter, urged the court to proceed with contempt proceedings against the Directors of the Afex Exchange Commodities Limited.

Olawoyin, however, objected, adding that there were no competent contempt proceedings before the court.

Olawoyin said two of the directors cited for contempt, Ayodeji Olaleye Balogun and Mobolaji Oluwatomi Adeoye, were in court.

He further told the court that others cited for contempt, Jendayi Fraaser, Justin Lee Topilow, and Koonal Bharat Ghandi are foreigners and were no longer directors of Afex.

Olawoyin stated that a search of Afex Exchange Commodities Limited Directors at the Corporate Affairs Commission (CAC) revealed that some of the people cited for contempt have resigned from the company several years ago.

Justice Aneke, thereafter, adjourned till July 8 for the hearing of all pending applications.

Meanwhile, the defendants in their preliminary objection are asking the court to decline jurisdiction to entertain any contempt proceedings in relation to or connected with or arising from the Notice of Disobedience of Court Order (Form 48) dated May 31, 2024, or any alleged non-compliance with the ex parte order of the court dated May 27, 2024.

They stated that the alleged contemptuous act was done outside the precincts of the court making the same, contempt ex facie curiae.

The Star