For failing to pay $431,233.41 arbitration ruling from June 22, 1998 with interest at the rate of 2% per annum till date, a British company, Plexus Cotton Limited, has asked a Federal High Court in Lagos to wind up Dangote Farms Limited.
Within the past 23 years when the debt remained unpaid, it has now ballooned, as of November 30, 2023, to $2,452,695.44 (N3,188,504,072 at N1,300 to a dollar).
The suit filed before Justice Kehinde Ogundare is marked FHC/L/CP/2608/2023, between Plexus Cotton Limited (PETITIONER) and Dangote Farms Limited (RESPONDENT).
Olanlokun Omolodun, legal practitioner and counsel to Plexus Cotton Limited, in a 15 paragraph petition accompanied by a four paragraph ‘Affidavit Verifying Petition of a limited Liability Company,’ deposed to by Nicholas Peter Francis Earlam, director of Plexus Cotton Limited, told the court that by its own admission, Dangote Farms Limited is unable to pay its established debt to the Petitioner and the sum owed the Respondent is increasing daily owing to the interest element.
“In the circumstances, it is just and equitable that the Respondent be wound-up.”
The United Kingdom-based company with its address at 3rd Floor, 14, Castle Street, Liverpool L2 ONE, England 2548312, said that it resorted to ask for a winding up of Dangote Farms Limited because of its refusal to obey arbitration ruling in the United Kingdom which asked the Nigerian firm to pay $431,233.41 from June 22, 1998 with interest at the rate of 2% per annum over the New York Prime Interest Rate, or as appropriate, the calculated average thereof.
The petition filed before Court reads:
“1. Your Petitioner is a company registered in the United Kingdom with its address at 3rd floor, 14, Castle Street, Liverpool L2 ONE, England 2548312
2. The Respondent, Dangote Farms Limited is a limited liability company registered under the Companies and Allied Matters Act 1990 with its current head office at 1, Alfred Rewane Road, Ikoyi, Lagos.
3. The nominal share capital of the Respondent is N4,500,000.00 divided into 4,500,000 ordinary shares of N1 each. The amount of the capital paid up or credited as paid is N4,500,000.00.
4. The Respondent’s business objects include food production and processing and general agriculture in the Federal Republic of Nigeria as set out in its memorandum and articles of association.
5. The Petitioner sought and paid for the supply of a quantity of cotton from the respondent which supply contract dispute was subsequently declared.
6. The dispute was arbitrated (which proceedings the respondent willfully boycotted despite repeated invitations before the arbitrators of Liverpool Cotton Association Limited who delivered an award in which they found the respondent liable for breach of its cotton supply contract with the petitioner in the sum of $431,233.41 from June 22, 1998 with interest at the rate of 2% per annum over the New York Prime Interest Rate, or as appropriate, the calculated average thereof.
Establishment of Respondent’s Indebtedness
7. The Respondent is, as of April 30, 2023, indebted to Your Petitioner in the sum of $2,307,922.03 (Two million, three hundred and seven thousand, nine hundred and twenty-two U.S. Dollars, and 3 cents) being the principal and interest accrued on the said award sum.
8. The respondent unsuccessfully challenged the award at the trial and appellate courts. Subsequent appeals by the respondent are in stasis as they are not being prosecuted diligently.
9. The High Court of Lagos State recognised the award given in England and which recognition the respondent brought Appeal No: CA/L/987/2017 against. This appeal is also in stasis as the appellant has refused to take necessary steps to prosecute or advance same.
10. Your petitioner recently issued and served upon the respondent a demand notice for the said award with interest at the 2% rate awarded but the respondent failed to respond to or heed the demand in same.
11. Your Petitioner has given the Respondent a long period of time to liquidate its indebtedness and the statutory three (3) weeks have elapsed, yet the Respondent has neglected to respond, pay or satisfy the said sum.
12. The Petitioner has filed before this Honourable Court, a Petition for winding up of the Respondent herein for its failure to pay its debt owed to the petitioner after same has become due and payable.
13. The Respondent’s refusal to liquidate its aforesaid indebtedness to Your Petitioner has occasioned serious financial hardship and unnecessary expenses to Your Petitioner and ought to be wound up to prevent its future indebtedness to other commercial entities.
14. The Respondent has shown by its refusal that it is insolvent and unable to pay its debt owed to the Petitioner in the sum of $2,281,998.92 (Two million, two three hundred and one thousand, eleven U.S. Dollars, and fifty-four cents).
15. The Respondent is, by its own admission, unable to pay its established debt to the Petitioner and the sum owed by the Respondent is increasing daily owing to the interest element, and in the circumstances it is just and equitable that the Respondent be wound-up. As of November 30, 2023, the sum had become $2,452,695.44.”
Against this background, Plexus Cotton Limited is praying the court that:
“a. Dangote Farms Limited be wound up by the Court under the provisions of the Companies and Allied Matters Act, 2020 for its inability to pay and satisfy its liquidated money sum owed
b. And such other orders that may be made in the circumstances as shall be just.”
From theStateonline
