He also ordered that the defendants be put on notice of the processes filed in the suit within five days of making the order.
At the resumed hearing, plaintiffs’ lawyer, Uwa, said that though the matter was adjourned for the hearing of motion on notice, he informed that despite the status quo order of the court, the premises of the AEDC (5th defendant) was invaded.
“We have filed an application of non-compliance with the status quo order,” he said.
Lawyers to all the defendants, including the 5th defendant, said they were not aware of the invasion.
The judge, however, expressed surprise that a court would make an order and parties would choose to do otherwise.
According to him, this is not safe for our system; it is not safe for members of the bar and the judiciary.
Ekwo, therefore, restated that the status quo order still subsists.
Responding to the arguments of the defence, Uwa said though the arbitration clause was correct, the matter the plaintiffs were “litigating today goes beyond that.”
He argued that the UBA and United Capital Trustees Limited were not part of the agreement in the arbitration clause.
According to him, we are suing on a compromise, not on the whole action.
Justice Ekwo, who said he intended to take the motion for stay of proceeding before going to the substantive matter, said: “This will give direction whether this court will continue with the case or not.”
He adjourned the matter until Feb. 16, 2022, for hearing of the motion for stay.
NAN reports that the BPE motion on notice was brought in accordance with Section 5 (1) & (2) of the Arbitration and Conciliation Act CAP A18 LFN, 2004, among others.
Some of the grounds for filing the motion are that “the plaintiffs, by the suit, are seeking to enforce certain provisions in the Share Sale Agreement and the Shareholders’ Agreement.
“That both agreements provide that all disputes between the parties shall first be referred to Arbitration for settlement.”
According to the motion, Clauses 15 .2 – 15.7 of the Share Sale Agreement provide that parties SHALL submit their disputes to Arbitration for settlement with the place of Arbitration being in London, England.
Again it states that “Clauses 16.3-16.7 of The Shareholders’ Agreement provide that parties SHALL submit their disputes to Arbitration for settlement with the place of Arbitration being in London, England.”
It stated further that “the alleged disputes herein sought to be litigated upon by the plaintiffs have not been referred to arbitration for an amicable resolution in line with the provisions of the Agreement.
“Section 5 (1) and (2) of the Arbitration Act Cap A18 LFN, 2004 provide that where parties had agreed or contracted to settle their disputes by arbitration and one of them heads straight to court in breach of the agreement, the court is bound to stay proceedings thereof pending resolution or settlement of the matters/disputes by arbitration.”
NAN