Takeover Talks: Arik Demands 20bln Naira In Suit Against FG, Ethiopian Airline
Arik Air Limited is not happy with the Nigerian government and Ethiopian Airlines.
It has filed a 20 billion Naira suit against the 2 parties over recent claims in the media that they were negotiating the takeover of the airline.
The suit was instituted by the airline at the Federal High Court in Lagos against Ethiopian Airlines, the Federal Ministry of Transportation and the Attorney General of the Federation.
A copy of the suit, which was filed on September 6 by Arik Air’s counsel, Mr Babajide Koku, Mr Chukwuemeka Nwigwe and Mrs Ezinne Emedom, was obtained by the News Agency of Nigeria on Sunday in Lagos.
According to the suit, 20 billion Naira is demanded as punitive damages against the first defendant for inducing or partaking in the interference of the rights of the plaintiff and the administration of justice.
Undue Hardship And Irreparable Damage
In its statement of claim supported by a 20-paragraph affidavit deposed by Mr Chris Ndulue, a Director with Arik Air, the plaintiff asked the court to restrain the first and second defendants from further negotiations on its takeover.
The plaintiff noted that the Asset Management Company of Nigeria (AMCON) had taken over the airline on February 8 which was challenged by its management via two suits already pending before the Federal High Court, Lagos.
According to the plaintiff, the suits numbers are FHC/L/CS/827/17 and FHC/L/CS/826/17, adding that the negotiations by the defendants will render the outcome of the suits nugatory.
The suit read: “The plaintiff avers that the agreement of the second defendant with the first defendant will be wide ranging and intricately affect every aspect of the plaintiff herein, including but not limited to the day to day running technical as well as financial management which will affect the plaintiff as being the largest domestic and regional airline in Nigeria.
“The plaintiff further avers that the action taken by the first and second defendants will have a negative effect on the country’s image as the plaintiff being the largest airline will be pawned over to another country for management”.
The plaintiff also claimed that the negotiations had caused undue hardship and irreparable damage to the Arik Air brand and ongoing investment discussions, as well as unbearable distress to the airline’s shareholders and directors.
It, therefore, asked the court to declare the negotiations null and void, claiming that the Ministry of Transportation had no power to transfer the management of the airline to Ethiopian Airlines while the suits over the takeover are pending.
The plaintiff also asked the court for an order directing the Attorney General of the Federation to ensure the investigation of Ethiopian Airlines by the appropriate authorities for inducing and interfering in the administration of justice in the pending suits.
“If found culpable, the airline should be charged to court for criminal contempt contrary to Section 133 (4) and (9) of the Criminal Code Laws of Lagos State, Cap C17,Laws of Lagos State of Nigeria, 2004,” the suit stated.
The plaintiff also wants the court to order the Inspector General of Police to investigate the actions of the second defendant.
The suit is yet to be assigned to any judge and no date has been fixed for hearing.