Skye Bank Plc has received the legal backing from a Federal High Court in Lagos to take over Obat Oil and Petroleum Ltd’s depot over an alleged N2.1billion debt.
The order followed an Originating Motion by the bank asking the enforcement of an arbitral award dated August 7, 2015 as Skye Bank sought to recover a debt of N2. 1billion owed it by Obat Oil and Petroleum. The loan was guaranteed by Oba Frederick Akinruntan, the Olugbo of Ugbo.
The bank further sought to recover 15 per cent interest on the amount from April 2014 till the liquidation of the debt.
The case was taken before an arbitrator, Afe Babalola (SAN), during which Obat Oil and Oba Akinruntan appealed for concessions and waivers on the amount of accrued interest.
The Arbitrator had held that it would be fair and equitable to award N1.4 billion to the claimant, which represents the amount the respondents admitted as being outstanding balance as at March 31.
Babalola also awarded 10 per cent interest annually on the N1.4billion from the April, 2014, till final liquidation of the amount.
The bank, however, alleged that Obat Oil and Oba Akinruntan failed to comply with the Arbitration Award.
It applied to the court to order the award’s enforcement.
Justice Dagat, Granting the application, made an order granting Skye Bank leave to enforce the Arbitration Award against the respondents.
Skye Bank in agreement with the order,on friday enforced the Arbitration Award against Obat Oil and Petroleum and Oba Akinruntan.
Justice Jude Dagat asked the Inspector-General of Police, the Assistant Inspector-General of Police to assist in the enforcement of the order.