Supreme Court overturns seizure of GHL oil vessel, fines First Bank ₦5m

The Supreme Court has nullified the judgment of the Court of Appeal that authorised the seizure of an oil vessel and its crude oil cargo belonging to General Hydrocarbons Limited (GHL) over an alleged breach of contract involving First Bank of Nigeria.

In a unanimous decision delivered by a five-member panel, the apex court ordered that the vessel and the proceeds from the sale of its crude oil cargo be returned to General Hydrocarbons Limited.

The court held that the Federal High Court lacked the jurisdiction to entertain the matter because it was not a maritime dispute but a contractual and financial disagreement between the parties.

According to the Supreme Court, the dispute arose from an alleged breach of contract and did not give First Bank the legal authority to seize the vessel or dispose of its cargo to recover an alleged debt.

The apex court consequently set aside the decisions of the lower courts that paved the way for the seizure and sale of the vessel and its contents.

It ruled that the actions taken against General Hydrocarbons Limited were not supported by law, having been founded on proceedings outside the jurisdiction of the Federal High Court.

The court further directed that the vessel and all proceeds realised from the sale of the crude oil be returned to their rightful owner.

In addition, the Supreme Court imposed a fine of ₦5 million on First Bank of Nigeria.