The Lagos division of the Court of Appeal has nullified the sale of Intercontinental Hotels, Lagos by Polaris Bank and Asset Management Corporation of Nigeria, AM ON; and ordered the return of the facility to the original owner, the Milan Industries Limited.
The court, in a unanimous decision, in suit No CA/LAG/CV/476/2021, delivered by three judges of the Appeal Court: Justices Jimi Olukayode Bada, who read the lead/unanimous judgment; Muhammad Ibrahim Sirajo and Peter Oyinkenimiemi Affen, ruled that Milan Industries Limited had fully paid the bank the N2 billion mortgage facility it secured from Polaris Bank before the hotel was taken over and sold by AMCON and the bank.
The bank, which was then known as Skye Bank, had put the management of the five-star hotel under the receivership of Mr. Kunle Ogunba, an arrangement that was nullified by a Federal High Court in Lagos.
Despite this, the bank went ahead and sold the hotel to another company, 11 Plc, a move that was challenged at the Appeal Court by the lawyers to Milan Industries Limited, Messrs Ahmed Raji, SAN and Tunde Kasunmu of Prof A.B Kasunmu, SAN, chambers.
Recall that Milan Industries Limited had taken a facility from Skye Bank to part-finance the five-star hotel, located in Victoria Island, Lagos and managed by IHG. The Milan Group, has up till 2021 to pay back the facility, but in a curious move, the bank obtained an interim order to take over the management of the hotel, an order that was vacated, when the suit was struck out by the court on March 20th 2018.
In a Certified True Copy, CTC, of the judgment, signed and released on Wednesday by the Senior Registrar of the court, A. G. Balogun, the appellate court held that the two issues Milan Industries, as appellant/cross respondent, was contesting were resolved in its favour.
Justice Bada, in the lead judgement, said, “With the resolution of issues number one nad two in favour of the cross respondent and against the cross appellants, Polaris Bank, AMCON and 11 Plc, it is my view that this cross appeal lacks merit and it is hereby dismissed.”
Agreeing with the lead judgment, another member of the Appeal Court panel, Justice Sirajo stated that “the appellant insisted that it had paid over two billion naira in liquidating the facility and that as at the time the 1st respondent, Polaris Bank, entered into agreement to sell the appellant’s secured asset to the second respondent, AMCON; there was no collaterized and secured asset to sell to the second respondent. It was also the case of the appellant that at the time the second respondent sold the appellant’s Intercontinental Hotel to the third respondent, the appellant had discharged its obligation under the legal mortgage by paying the amount secured by the property.”
To buttress his position, Justice Sirajo ruled, “I adopt his lordship’s reasoning and conclusion in the leading judgment as mine in also allowing the appeal. I abide by all the orders made in the leading judgment including that of the costs.”
Also concurring with the lead judgment by Justice Bada, the third member of the appeal panel, Justice Affen said, “The judicial reasoning and conclusions reached on the issues raised accord with mine, and I hereby affirm my agreement with the leading judgment, which allowed the main appeal and dismissed the cross appeal. I equally abide by the orders on the costs.”
