The Digest:
Parallex Bank Limited has asked a Federal Capital Territory High Court to dismiss the N7.15 billion suit filed against it by FHT Mega Express Limited. The bank alleges the logistics firm engaged in abuse of court process, forum shopping, and suppression of material facts. The dispute stems from a failed letter of credit transaction, with FHT Mega Express claiming it deposited funds as collateral that were not utilized as agreed. The court had previously ordered the freezing of the bank's funds pending resolution.
Key Points:
- The freezing of such a significant sum could impact the bank's liquidity and operations, affecting its customers and stability.
- It highlights the severe financial and legal risks for businesses in import financing and foreign exchange transactions.
- Parallex Bank aims to recover an alleged debt, while FHT Mega Express seeks to reclaim its frozen collateral and secure compensation.
- The allegations of forum shopping and multiple lawsuits point to potential weaknesses in judicial case management and procedural integrity.
- This case arises amid ongoing economic volatility, underscoring the critical need for contractual reliability in trade finance.
The court's upcoming ruling on the preliminary objection will be pivotal in determining the procedural direction of this complex financial dispute.
Sources: TheCable
