Firstsitenews-A Federal High Court sitting in Lagos on Monday adjourned proceedings in a suit filed by Ecobank over the alleged sale of 6.3 billion shares in Barbican Capital Ltd., stating it would await the outcome of an appeal currently before the Court of Appeal.
Ecobank had instituted the legal action against Obafemi Otudeko, Barbican Capital Ltd., and Honeywell Flour Mills Plc., listed as the first, second, and third defendants respectively.
Also joined in the suit are Siloam Global Services Ltd., Oyeleye Foluke, FBN Holdings Plc., the Corporate Affairs Commission (CAC), and the Nigerian Stock Exchange, listed as the fourth to eighth defendants.
Represented by Senior Advocate of Nigeria (SAN), Kunle Ogunba, Ecobank is seeking an interlocutory injunction to restrain the defendants from selling, transferring, or dealing in the 6.3 billion shares allegedly held by Barbican Capital Ltd. in FBN Holdings Plc., pending the determination of the substantive case.
The bank is also requesting a similar order to prevent the conversion of shares in Honeywell Flour Mills Plc.—allegedly pledged to Ecobank as collateral for a loan—into cash or any other negotiable instrument.
However, the defendants challenged the court’s jurisdiction, arguing that a similar case was already pending before Justice Yellim Bogoro and that an appeal on the matter was also before the Court of Appeal.
They urged the court to transfer the matter to the administrative judge, citing the existence of ongoing parallel proceedings.
In his ruling, Justice Dipeolu held that the court could not proceed with the matter while an appeal on the same issue was pending. He stated that continuing under such circumstances would amount to "judicial recklessness."
He emphasized that, under the law, once a notice of appeal is entered and the court is formally notified, the lower court is automatically stripped of jurisdiction.
Justice Dipeolu referenced the case of Okafor v. Attorney-General of Anambra State in support of his ruling. He also acknowledged that the parties had confirmed the existence of a related suit before Justice Bogoro, which had already been addressed.
The case was adjourned to December 1, 2025, pending further developments from the appellate court.
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