The Supreme Court has overturned a Court of Appeal judgment that authorised the seizure of an oil vessel and its cargo of crude oil belonging to General Hydrocarbons Limited (GHL) over an alleged contractual dispute with First Bank of Nigeria (FBN).
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‎In a unanimous decision delivered by a five-member panel, the apex court directed that the seized vessel, along with the proceeds realised from the sale of its crude oil cargo, be returned to GHL.
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‎The court ruled that the Federal High Court lacked the jurisdiction to entertain the matter, explaining that the dispute was neither maritime in nature nor related to admiralty law. Instead, it described the case as one arising from a contractual and financial disagreement.
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‎According to the justices, the dispute centred on an alleged breach of contract and did not confer on First Bank the legal authority to seize GHL’s vessel or dispose of its cargo as a means of recovering an alleged debt.
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‎Consequently, the Supreme Court nullified the lower courts’ decisions and imposed a ₦5 million cost against First Bank of Nigeria.