The real estate sector in Nigeria was recently rocked by a momentous court ruling. The Court of Appeal has ruled in favor of Suru Worldwide Ventures Nigeria Limited by overturning the decision of AMCON (Asset Management Corporation of Nigeria) to seize the company’s assets for non-payment of a loan.
In his judgment, Justice Emmanuel Agim said there was no merit in AMCON’s appeal and upheld the lower court’s decision to stay the seizure. He also ordered a new hearing to be held before the superior court.
The Court of Appeal held that the failure of AMCON to join Suru Worldwide Ventures Nigeria Limited as a defendant in its action before the High Court rendered the proceedings leading to the attachment null and void. Therefore, the Court of Appeal ordered that the matter be remitted to the High Court for further consideration.
The legal saga began when the Federal High Court in Lagos ordered the seizure of the assets of Suru Worldwide Ventures Nigeria Limited by AMCON for non-payment of the loan obtained from the defunct Oceanic Bank.
AMCON had asked the court to order the security forces to provide it with protection to exercise its rights of detention as a legal mortgage lender under the Mortgage Loan Deeds of Suru Worldwide Ventures Nigeria Limited.
This decision by the Court of Appeal has sparked mixed reactions in the real estate industry, as it raises questions about the legal process followed by AMCON and its respect for debtors’ rights.
On the one hand, some argue that AMCON has the right to seize the assets of debtors who do not repay their loans, because this helps maintain the stability of the banking sector by ensuring debt recovery. However, others say the ruling highlights the need for greater transparency and better protection of debtors’ rights.
Whatever the ultimate outcome of this case, it is clear that it raises key questions about the regulation of the real estate sector and AMCON’s role in debt recovery. It will be interesting to see how this case develops and what the implications will be for all parties involved.