The Federal High Court in Lagos has granted Saudi Modern Packaging Factory Co. Ltd leave to publish a winding-up petition against Frutta Juice & Services Limited over an alleged $53,026 debt, while making clear that the order does not amount to the winding up of the company.
Justice Musa Kakaki granted the application on July 24, 2026, after considering the petition and the materials placed before the court.
A winding-up petition is a legal process through which a creditor asks the court to wind up a company and apply its assets towards the settlement of debts, subject to the court being satisfied that the statutory requirements have been met.
In opposing the application, Frutta reportedly did not deny the debt but attributed the delay in payment to the economic impact of the COVID-19 pandemic and the depreciation of the naira against the United States dollar.
The company also maintained that it had the financial capacity to pay the amount owed.
In its ruling, however, the court held that the petition disclosed a prima facie case, relying on what it described as an “undisputed debt.”
Justice Kakaki held that the issues raised by the parties could be fully considered at the substantive hearing of the winding-up petition and consequently granted Saudi Modern Packaging Factory Co. Ltd permission to advertise the petition.
The court directed that the petition be published in the Federal Government Official Gazette, as well as in ThisDay and The Guardian newspapers.
The order is procedural and does not mean that Frutta Juice & Services Limited has been wound up.
The substantive petition remains pending before the Federal High Court and has been fixed for hearing on November 24, 2026.
Frutta has since challenged the July 24 decision at the Court of Appeal, asking the appellate court to set aside the ruling or dismiss the application that led to the advertisement order.
The juice company is also seeking a stay of implementation of the Federal High Court’s ruling and an order restraining the Saudi company from publishing or advertising the winding-up petition pending the determination of its appeal.
Frutta argued that publication of the petition before the substantive dispute is finally determined could cause serious commercial damage to its business.