Zutari Consulting Nigeria Ltd has accused Dantata & Sawoe Construction Company Limited of failing to sign a $1.4 million terms of settlement agreement regarding an alleged $1,257,592.83 debt owed to Zutari following subcontract work on the Dangote Fertilizer Plant project in Lekki, Lagos, Nigeria.
Zutari Consulting’s lawyer, Chris Ekemezie, made the allegations before Justice G. Umar on Thursday when the matter was called.
Nairametrics previously reported that the company had sued Dantata over issues concerning the alleged $1,257,592.83 debt.
As of September 2024, Nairametrics reported that the court had granted the parties over a 30-day extension for settlement while adjourning the matter several times to hear Zutari Consulting’s motion seeking the court’s appointment of a provisional liquidator for Dantata & Sawoe Construction Company Nigeria Limited over the alleged debt.
Legal Dispute
The court, presided over by Justice Inyang Ekwo, had previously approved the placement of a winding-up petition advertisement against Dantata in a motion on notice filed by Zutari Consulting Nigeria Ltd (the petitioner) in Suit No: FHC/ABJ/PET/3/2023.
The petitioner is engaged in engineering design, consulting, and supervision of engineering works, while Dantata & Sawoe is a leading general construction company in Nigeria with over 40 years of experience.
The petitioner stated that arbitration over the matter was held in London, United Kingdom, and a final arbitral award was issued by the arbitration tribunal on April 7, 2021, finding that Dantata & Sawoe was liable to the applicant for the stated debt.
However, in a notice of preliminary objection filed on May 9, 2023, Dantata’s legal team urged the court to strike out the petition for lack of jurisdiction, informing the court that an appeal had been entered amid ongoing settlement talks.
What Transpired in Court
At the resumed proceedings on Thursday, Zutari Consulting’s counsel, Ekemezie, told Justice Umar that the development concerned an international award against the respondent in 2021 in England.
- He alleged that Dantata was drawing back from signing the terms of settlement.
“We made several attempts for them to pay the award, and in September 2024, Chief Kanu Agabi appeared in the matter and said that he wanted them to pay the money. We agreed, as we do not want to wind up the company.
“On his plea, we conceded to a 25% waiver. We requested that they reduce it to writing and file Terms of Settlement, but the Learned Silk was reluctant to do so. By the end of April, they could not pay and asked us to give them until the end of May 2025 to pay.
“They have failed to sign the terms that we sent to them, which are their own terms. By the end of May, they could not pay and have not taken any steps to pay,” he added, highlighting that he has a pending Motion Ex-Parte for winding up the company.
- Counsel for Dantata, Ofem Obeten, Esq., responded that Ekemezie had rightly mentioned the lead counsel in the matter, who was supposed to be present but was before another judge in the same court on another matter.
- Ekemezie told the judge that his winding-up application “is ripe for hearing” and that even if Agabi appears in court, he has no business in it.
“What is your problem in making the payment?” the judge asked Obeten, to which he responded, “We have an objection against the jurisdiction of the court.”
- Ekemezie insisted that the objection had already been taken and dismissed by the court.
- Obeten then said that his client applied for the award not to be registered on the grounds that there are two pending matters and that the case has gone to the Court of Appeal.
“Settlement has not broken down, but we have failed to make remittance before May 2025,” he admitted.
- He asked for a further adjournment, within which the parties will continue settlement discussions.
“Did you see their Terms of Agreement?” the judge asked Obeten, and he responded, “There is a Terms of Agreement, but it was sent to Chief Agabi himself.”
- The judge asked how much the money is currently.
“It is about $1,400,000.00. Your Learned Brother (Justice Inyang Ekwo) has indulged them (Dantata) several times and said that 7th May 2025 will be the last time he will take the report of settlement,” Ekemezie responded.
- Obeten maintained that what is left now is for his client to “start remitting payment,” and he thinks that is the only issue.
- The court subsequently adjourned to 7th July 2025 for hearing and/or report of settlement.
What you should know
Nairametrics gathered that an appeal on the matter is pending at the Court of Appeal.
Additionally, Nairametrics reports that the Federal High Court has jurisdiction over transactions involving both parties.
The court will examine the legal position in determining the final outcome of the case.
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