N5.5bn debt: Supreme Court dismisses Honeywell’s appeal, imposes fine

The Supreme Court has dismissed an appeal by Honeywell Flour Mills Limited challenging the judgement of the Court of Appeal in the N5.5 billion debt dispute with Ecobank Nigeria Limited.

The Supreme Court also ordered Honeywell to pay N1 million to Ecobank.

The five-member panel of the apex bank, led by Tijjani Abubakar, gave the order in a judgement delivered on Friday, January 29, 2023.

Honeywell and its sister firms, Anchorage Leisures Ltd and Siloam Global Ltd, on 6 August 2015, sued Ecobank before the Federal High Court in Lagos over repayment of a N5.5 billion debt.

In the suit, the companies prayed the court to declare that “having paid the sum of N3.5 billion in cumulative settlement of their total outstanding indebtedness (N5.5 billion) to Ecobank, they owned no further debt obligation to Ecobank arising from their banker-customer relationships.”

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The company also urged the court to hold that Ecobank “was obligated to issue letters of discharge, release collaterals by which the prior indebtedness was secured.”

Ecobank, in its defence, argued that an agreement was reached between it, Honeywell, Anchorage and Siloam on July 22, 2013, “for a definite settlement of N3.5 billion to be paid in terms of N500 million immediately and the balance of N3 billion before the exit of the CBN examiners from Ecobank’s offices.”

However, the Supreme Court, in a judgement delivered by Justice Emmanuel Agim, said Honeywell, Anchorage, and Siloam were indebted to Ecobank.

“I affirm the judgement of the Court of Appeal, setting aside the decision of the Federal High Court, granting the reliefs claimed for by the appellants (Honeywell).

“I hold that the appellants’ claim at the trial court fails and it is hereby dismissed. The appellants shall pay the cost of N1 million to the respondent (Ecobank),” Justice Agim declared.

The Star