The Supreme Court has overturned a Court of Appeal judgment that authorised the seizure of an oil vessel and its crude oil cargo belonging to General Hydrocarbons Limited (GHL) in a dispute involving First Bank of Nigeria over an alleged breach of contract.
In a unanimous decision delivered by a five-member panel, the apex court ordered that the vessel and the proceeds from the sale of its crude oil cargo be returned to General Hydrocarbons Limited.
The Supreme Court held that the Federal High Court lacked jurisdiction to entertain the matter as a maritime dispute, ruling that the case was fundamentally based on a contractual and financial disagreement.
According to the court, the dispute centred on an alleged breach of contract and did not give First Bank of Nigeria the legal authority to seize the oil vessel or dispose of its cargo in an effort to recover the alleged debt.
The apex court consequently nullified the earlier judgment authorising the seizure and imposed a ₦5 million cost against First Bank of Nigeria.
