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Lagos court reverses freezing order on GHL’s assets

The Federal High Court in Lagos has lifted the Mareva injunction, which had frozen the company's and its directors' assets.

The court's decision came after compelling arguments from GHL's legal team, led by Abiodun Layonu, SAN, and Olumide Aju, SAN, who represented the second through fifth defendants in the case.

Justice Dehinde Dipeolu's decision to overturn the Mareva injunction was based on a violation of a prior order from a court with concurrent jurisdiction. The court examined an earlier order from Justice Ambrose Lewis-Allagoa in Suit No. 1953, which had already addressed the issue.

This suggests that the court found the Mareva injunction to be inconsistent with the earlier ruling, prompting it to lift the asset freeze on the company and its directors.

Justice Dipeolu's decision emphasized that First Bank of Nigeria and FBNQUEST LTD failed to disclose Justice Lewis-Allagoa's previous order when seeking the Mareva injunction.

This omission rendered the injunction incompatible with the previous ruling, leading the court to conclude that First Bank intentionally "suppressed facts" in an attempt to mislead the court.

As a result of the court's findings, Justice Dipeolu lifted the freezing order on GHL's accounts, as well as those of the other defendants involved in the case.

This decision effectively restores access to the previously frozen assets, representing a significant victory for GHL and the other defendants.

Despite the fact that an ongoing judgment existed, First Bank initially sought the injunction through an ex parte application, targeting GHL and 15 other entities.

GHL and several defendants claimed that the injunction was obtained through fraudulent misrepresentation and concealment of material facts.

They argued that if all relevant information had been disclosed, the injunction would not have been granted.

In response to the court's decision, GHL has vowed to take global legal action. The company's directors, who were also affected by the injunction, have filed lawsuits seeking $1 billion each in damages for defamation and wrongful freezing of their accounts.

GHL is also pursuing legal action against First Bank's lawyers, Babajide Koku, SAN, and Victor Ogude, SAN, by filing a case with the Legal Practitioners Privileges Committee, accusing them of unprofessional conduct.

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