The Court of Appeal in Abuja on Friday dismissed the appeal filed by the Nigerian Agricultural Insurance Corporation (NAIC) against FirstBank of Nigeria over a dispute on the disbursement of the N200 billion Commercial Agriculture Credit Scheme fund.
In seven judgements delivered within six hours, Justice Okon Abang held that NAIC, by applying to withdraw its suit at the Federal High Court after issues had been joined, acted with the belief that it could manipulate judicial proceedings to save a suit that was unsupported.
The judgement followed NAIC’s appeal against the decision of Justice A.R. Mohammed of the Federal High Court, Abuja, delivered in March 2015.
NAIC had filed an originating summons seeking declaratory reliefs against FirstBank regarding the disbursement of the Federal Government’s N200 billion scheme.
The corporation argued that FirstBank, one of the disbursing banks, failed to deduct the 2.5% premium payable to it at the time.
Court documents show that FirstBank was served with the originating processes and responded with a counter-affidavit and written address opposing the suit.
Since 2013, the case went through several adjournments, with the bank filing further affidavits in response.
NAIC later applied to withdraw the suit, stating in an affidavit that Jubril Aku, a representative of the Bankers’ Committee, had approached it for an out-of-court settlement.
FirstBank opposed the withdrawal, arguing that NAIC filed the application without its consent.
“The application to discontinue the suit was brought after parties had exchanged pleadings and the matter fixed for hearing,” the bank stated, urging the court to dismiss the suit to prevent prejudice.
NAIC countered, insisting that Mr Aku had made repeated attempts to secure a settlement for all related cases involving the respondent and other banks.
It argued that the proper order for the trial court was to strike out the case, not dismiss it.
Justice Mohammed dismissed the suit.
Legal analysts note that while a struck-out case may be refiled, a dismissed case cannot.
Dissatisfied, NAIC appealed, asking the Court of Appeal to set aside the dismissal and replace it with a striking out.
FirstBank asked the appellate court to uphold the decision and rule on whether the trial court properly exercised its discretion.
The credit scheme at the centre of the dispute was part of efforts to support the agricultural sector.
The Commercial Agriculture Credit Scheme was introduced in 2009 and financed with a N200 billion bond raised by the Debt Management Office.
Loans under the scheme were issued to eligible companies at a maximum interest rate of 9%.
The Court of Appeal upheld the trial court’s decision, dismissing NAIC’s appeal.
