The Court of Appeal Lagos Division has overturned Polaris Bank and Asset Management Corporation of Nigeria’s sale of Intercontinental Hotels, Lagos, and ordered that the facility be returned to its original owner, Milan Industries Ltd.
The appellate court ruled that Milan Industries Ltd had fully paid the bank the Two Billion Naira (N2Billion) mortgage facility it secured from Polaris Bank before the hotel was taken over and sold by AMCON and the bank in a unanimous judgement in suit No CA/LAG/CV/476/2021 delivered by three Justices of the Appeal Court: Jimi Olukayode Bada, who read the lead judgement; Muhammad Ibrahim Sirajo and Peter Oyinkenimiemi Affen.
The bank, then known as Skye Bank, had placed the management of the five-star hotel in the hands of Mr. Kunle Ogunba, an arrangement that was later overturned by a Federal High Court in Lagos. Despite this, the bank sold the hotel to another company, 11 PLC, a decision that was challenged in the Appeal Court by Milan Industries Ltd’s lawyers, Messrs Ahmed Raji SAN and Tunde Kasunmu of Prof A.B Kasunmu SAN chambers.
Recall that, Milan Industries Ltd obtained a loan from Skye Bank to help finance the five-star hotel on Victoria Island in Lagos, which is managed by IHG. The Milan Group has until 2021 to repay the loan, but in an unusual move, the bank obtained an interim order to take over management of the hotel, which was vacated when the suit was dismissed by the court on March 20th, 2018.
The appellate court held that the two issues Milan Industries, as Appellant/Cross Respondent, was contesting were resolved in its favour, according to the Certified True Copy of the judgement signed and released on Wednesday by the Senior Registrar of the court, A. G. Balogun.
The appellate court held that the two issues Milan Industries, as Appellant/Cross Respondent, was contesting were resolved in its favour, according to the Certified True Copy of the judgement signed and released on Wednesday by the Senior Registrar of the court, A. G. Balogun. According to Justice Jimi Bada’s lead decision, “With the resolution of Issues No. 1 and 2 in favour of the Cross Respondent and against the Cross Appellants (Polaris Bank, AMCON and 11 PLC), it is my view that this cross appeal lacks merit and it is hereby dismissed.”
While agreeing with the lead judgment, Justice Ibrahim Sirajo, another member of the appeal court panel, stated that “the appellant insisted that it had paid over Two Billion Naira in liquidating the facility and that as at the time the 1st respondent (Polaris Bank) entered into agreement to sell the appellant’s secured asset to the 2nd respondent (AMCON), there was no collaterized and secured asset to sell to the 2nd respondent. It was also the case of the appellant that at the time the 2nd respondent sold the appellant’s Intercontinental Hotel to the 3rd respondent, the appellant had discharged its obligation under the legal mortgage by paying the amount secured by the property.”
To back up his claim, Justice Sirajo ruled that “I adopt his lordship’s reasoning and conclusion in the leading judgment as mine in also allowing the appeal. I abide by all the orders made in the leading judgment including that of the costs.”
While agreeing with the lead judgement of Justice Bada, the third member of the appeal panel, Justice Peter Affen stated “the judicial reasoning and conclusions reached on the issues raised accord with mine, and I hereby affirm my agreement with the leading judgment which allowed the main appeal and dismissed the cross appeal. I equally abide by the orders on the costs.”
