N1.015bn Judgement Sum: Court Sets Aside Order Attaching AMCON Funds
A Federal High Court sitting in Lagos has set aside an order attaching funds belonging to the Asset Management Corporation (AMCON) in the custody of 24 commercial banks operating in Nigeria over alleged N1.015 billion debt owed a lawyer, Chief Anthony Ajibola Aribisala.
Justice Tijjani Ringim in a ruling held that the Judgment Creditor (Aribisala), failed to sought for and obtained the consent of the Attorney-General of the Federation before the commencement of the Garnishee Proceedings against AMCON.
The matter began in 2020 at a Lagos High Court in suit No. LD/4123/CMW/2020 brought by the judgment creditor, Aribisala, against AMCON to recover
N1,014,701,905.52 owed him by the corporation.
On October 17, 2022, the judgment creditor secured judgment in the suit in his favour.
Thereafter, the Judgement Creditor proceeded to the Federal High Court to register the judgment as suit No. FHC/L/NRJ/9/22.
Following the registration, on November 4, 2022, the Federal High Court, Lagos, presided over by Justice Akintayo Aluko made a garnishee order nisi attaching the funds of AMCON in the custody of 24 commercial banks operating in Nigeria.
However, AMCON, through its lawyer, Dr. Francis Chuka Agbu, challenged the order, and urged the court to set it aside.
Due to urgent election matters being handled by Justice Aluko, the case was transferred to Justice
Tijjani Ringim to listen to the argument of the parties for adjudication.
In his ruling, Justice Ringim held that Section 19(4) of the AMCON Act provides that, "All money standing to the credit of the corporation in any bank account is deemed to be in custody and control of the corporation."
The judge also started that in line with the plain and clear wordings of Section 19(4) of AMCON Act, the requirement of consent of the Attorney General of Federation as a precondition to the commencement of garnishee proceedings against the Judgment Debtor cannot be washed away because the fund of the Judgment Debtor/Applicant is in the Garnishee Commercial Banks, and not under the custody and control of a public officer.
The judge added that technically, the law deemed such fund in whatever bank to be in custody and control of the Judgment Debtor.
"It is then obvious to me that the combined provisions of section 19(3) and (4) of the AMCON Act, make it plain and clear that it's a pre-condition to the commencement of the instant Garnishee proceedings for the Judgment Creditor/ Respondent to have sought for and obtained the consent of the Attorney General of Federation.”
Citing plethora of court decisions, the judge held, "I cannot but follow suit on the strength of the sacred principle of judicial precedence that the requirement of consent of the Hon. Attorney General, as a precondition to commencement of a garnishee proceedings against a public officer, is part of our law and it's not in conflict with any provision of our constitution.