Your Suit Against SEC, CBN Is Statute Barred, Unenforceable, Court Tells Nospetco Investors

Your Suit Against SEC, CBN Is Statute Barred, Unenforceable, Court Tells Nospetco Investors

A Lagos Federal High Court, has declared a suit filed against the Central Bank of Nigeria (CBN) and the Security and Exchange Commission (SEC) by investors in Nospetco Oil & Gas Limited, to recover their investment worth N22, 445, 571, 446.84 billion, as statute-barred, and no legally unenforceable.

Justice Lewis Allagoa in his ruling on a Preliminary Objection, filed by counsel to the CBN, Mr. Olumuyiwa Aduroja (SAN) held that the investors (Plaintiffs) failed to commence the suit within the statutory period of three months.

14 Nospetco investors, through their lawyer, Debo Adeleke, had on behalf of 13, 741 other investors, instituted the suit numbered FHC/L/248/2012, against the SEC, CBN and Nospetco Oil & Gas limited, who were listed as first to third respondents.

The Plaintiffs had urged the court to mandate the second defendant (CBN) to release a sum of N22, 445, 571, 446.84 billion, presently in its custody on the instruction of the first defendant, SEC.

They are also prayed the court to mandate the CBN to release, the sum of N22, 445, 571, 446. 84 billion back to the investors through their solicitor or through the court in a profit-yielding account.

The Plaintiffs further prayed the court for an order compelling the third defendant, (Nospetco Oil &Gas limited) to stop forthwith its illegal, unlawful and fraudulent business and banking activities, which it has been relentlessly carrying out under the covers since May 2007.

The Plaintiffs are also demanding for the sum of N10 million damages against the defendants.

However, Justice Allagoa in his ruling upheld the submissions of CBN counsel, Aduroja (SAN) and held that the Plaintiffs failed to commence the suit within the statutory period of three months as prescribed under CAP. P41, LFN, hence the court has no jurisdiction to entertain the suit.

Aduroja had in a Preliminary Objection brought pursuant to Section 6(6) (b) of the Constitution and Section 53 of Banks and Other Financial Institutions Act, argued that the Plaintiffs’ cause of action arose on May 2007, and the suit was filed in 2012.

He argued that the suit was filed five years beyond the three months within which the Plaintiffs are allowed to bring an action against a Public Officer including Corporate or Statutory corporations or bodies like the Central Bank of Nigeria.

Aduroja urged the court to hold that the issue of limitation touches on the jurisdiction of the Court and can be raised at any time.

He stated that the second defendant (CBN), became involved in the transaction in the process of carrying out its statutory duties under Section 2 of the CBN Act 2001, and that by the provision of Section 53 (1) of BOFIA, the CBN is protected against any adverse claims for anything done or omitted to be done in good faith in connection with the execution of any power conferred upon the bank.

He further argued that the provision of Section 53 (1) of BOFIA applies to the 2nd Defendant not only when it is implementing the provisions of BOFIA but also when it is carrying out its statutory duties under the Central Bank of Nigeria Act, 2007.

Ruling on the suit, Justice Lewis-Allagoa, upheld Aduroja’s submissions and declared that the Plaintiffs’ suit is statue barred and unenforceable.

The Plaintiffs are seeking a declaration that they are entitled to the release of a sum of N22, 445, 571, 446.84 billion, presently in the custody of the second defendant on the instruction of the first defendant.

The plaintiffs are seeking the following, ‘’A declaration that the continued withholding of a sum N22, 445, 571, 446.84 billion, frozen from the accounts of the third defendant, by the second defendant without releasing same to the Plaintiffs on demand is unlawful and inimical to the over-tiding interest of the Plaintiffs.

‘’A declaration that the refusal, omission, or failure of the first defendant to direct the second defendant to release the salvaged fund to the Plaintiffs on demand is contrary to the first defendant’s statutory duty to protect the interest of the Plaintiffs.

‘’A declaration that the continued refusal, omission, and/or failure of the second defendant to release the money in its custody to the Plaintiffs despite the repeated demands and numerous representation amounts to insensitivity to the plights of the Plaintiffs, Legally indefensible and morally wrong.
‘’An order mandating the second Defendant to release a sum of N22, 445 571 446.84 billion, to the investors (Plaintiffs) through their Solicitor and/or pay same to the Honourable Court in a profit yielding account.

‘’An order compelling the third defendant to stop forthwith its illegal, unlawful and fraudulent business and banking activities which it has been relentlessly carrying on undercover and clandestinely since May 2007 after its operations were halted by the first defendant and refund the money invested by the Plaintiffs accordingly.

‘’An order of this Honourable Court awarding a sum of N10 Million as cost of instituting and prosecuting this action, traveling expenses to Abuja by the Plaintiffs and their Legal Representatives to plead, and demand for the release of their money in the custody of the first and second defendants.