A Federal High Court in Lagos has dismissed a suit by some aggrieved shareholders of the three nationalised banks – Afribank  Plc, Spring Bank  Plc and Bank PHB Plc – challenging the takeover of their banks by the Central Bank of Nigeria and Asset Management Corporation of Nigeria.

Following the nationalisation of the banks, Afribank became Mainstreet Bank; Spring Bank changed to Enterprise Bank and Bank PHB was changed to Keystone Bank.

Justice Charles Archibong, dismissed the shareholders’ suit in a ruling on the preliminary objection filed by the defendants in the suit on Monday.

In the ruling which became known on Tuesday, the judge held that the suit was “unsustainable” by the shareholders in accordance with Section 53 of Banks and other Financial Institutions Act.

This came despite pending petition against the judge on the allegation of bias and another application asking him to disqualify himself from continuing presiding over the matter.

The shareholders – Boniface Okezie, Adeyemi Kehinde, Adebowale Bolanle and Cole Alexander sued for themselves and on behalf of all the shareholders of the three defunct banks.

They were, through the suit, challenging an alleged plan by the CBN and AMCON “to transfer the assets, businesses and operations”of their banks to Mainstreet, Keystone and Enterprise banks.

Apart from CBN and AMCON, other defendants in the matter included the Nigeria Deposit Insurance Corporation , Securities and Exchange Commission, Nigerian Stock Exchange  and the Minister of Finance, Dr. Ngozi Okonjo-Iweala.

The shareholders had, through their lawyer, Chuks Nwachuku, petitioned the Chief Judge of the Federal High Court, Justice Ibrahim Auta, asking him to investigate the conduct of Justice Archibong in the matter.

Nwachuku had in the petition, a copy of which was sent to the Chief Justice of  Nigeria, Justice Dahiru Musdapha, stated that Justice Archibong had conducted himself in a manner that threatened all that is noble in the administration of justice.”

The petitioners had alleged bias against Archibong on the basis that the judge’s ruling in another  matter filed by the directors of Bank PHB challenging the liquidation of the bank by the CBN without recourse to them touched on the substance of their own suit before him.

Source: Punch/ Ade Adesomoju