Insolvency: Judge Directs Winding Up Of Anyiam Osigwe Group Over N750m Debt

Due to its inability to pay its debt of N750m owed to First Bank of Nigeria, FBN, Plc since November 2006, a Federal High Court in Ikoyi, Lagos, presided over by Justice Ayokunle Faji has directed the winding up of Anyiam Osigwe Group Limited.

Justice Faji took the decision in a judgment he delivered in a suit designated FHC/L/CP/925/14 between FBN as Petitioner and Anyiam Osigwe Group as Respondent.

While the case lasted, Dr Kemi Pinheiro SAN, represented FBN, while E. I. Maduabuchi was for the Respondent.

Arguing on behalf of the old generation bank, Dr Pinheiro, posited that Anyiam Osigwe Group be wound up pursuant to the Companies and Allied Matters Act. 

Justice Faji agreed with the submission of Dr Pinheiro that the Respondent failed to furnish any satisfactory evidence to show that the unliquidated debt was still being disputed, as argued by the Respondent.

The judge equally threw out the contention of Anyiam Osigwe Group that the debt was the subject of another suit, marked LD/1798/09.

Justice Faji noted that there was nothing in the said suit that could amount to a dispute about the debt, as the suit had been struck out and remained unlisted,

The court further frowned at the Anyiam Osigwe Group’s contention that it was solvent and able to pay its debt.

Justice Faji held that the financial institution had proved and satisfied the court that the Respondent was unable to pay its debt pursuant to Section 408(d) of the Companies and Allied Matters Act, 2004 (being the law at the time of the transaction leading to the dispute).

According to the judge, “In the instant case, the Respondent (Anyiam Osigwe Group) has not said that it has paid the entire sum due. It has not even shown that it has paid the principal sum of N750,000,000. It has only alleged paying N230,000,000.

“Even though a Court should not hastily grant a winding up order, where there are strong grounds for doing so, particularly, where the dispute as to the debt is not on substantial grounds, the Court will grant a winding up order. So, it is in this case. 

“This Petition has immense merit and ought to and is hereby granted in its entirety.”

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