A Federal High Court in Abuja has set aside an order which allowed the Asset Management Company of Nigeria (AMCON) to shut down the facilities of Capital Oil on November 13, 2012.
In setting aside the order, Justice Abdul Kafarati ruled that the court has the powers to set aside its orders especially when justice demands it does so.
He added that Capital Oil was an on-going concern when it was shut down and the business of AMCON is not to stifle businesses.
Justice Kafarati ordered AMCON to reopen the facilities while it retains the title deeds of the facilities and also enter into negotiation with the company on how to pay the debt.
The Judge had on November 13, ordered AMCON to take immediate possession of properties and assets of Capital Oil and Gas Industries Limited, following allegation that the oil firm is indebted to AMCON to the tune of N48.014 billion.
Capital Oil re-approached the High Court on November 22, and asked it to vacate the interim order.
Meanwhile an attempt by AMCON to get the court’s order to sell off proceeds stored in the company’s facility and an order as to where the money will be retained hit a brick wall.
Counsel to AMCON, Mr Ricky Tarfa standing on Order 28 of the court rules, asked the court to order the sales of products held in the capital oil storage facilities, he further asked that proceeds of the sale be held in an account as ordered by the court pending the determination of the owners of the fund.
Rejecting the oral application, counsel to Capital Oil told the court that such an application must come formally and besides that, products in the Capital Oil facility belong to the Nigerian National Petroleum Corporation (NNPC).
Justice Kafarati ordered AMCON to bring a formal application as a result of the many interests on the products and adjourned the suit to the 15th of January 2013 for definite hearing.