The Federal High Court, Lagos on Friday ruled that the attempt by the Asset Management Corporation of Nigeria ( AMCON) to transfer the assets of Arik Air Limited to NG Eagle Airlines (third defendant) and Super Bravo Limited (fifth defendant); was not in the best interest of Arik Air.
This is just as Justice A. Lewis-Allagoa, granted all the prayers of the plaintiffs Sir Johnson Arumemi Ikhide, and his wife, Mary Arumemi Ikhide ordering the defendants ( AMCON) to render accounts and/or deliver returns to the Corporate Affairs Commission covering the entire period of receivership over Arik Air Limited within 14 days of making the order.
The court also ruled that the transfer of Arik Air Limited assets to NG Eagle Limited, Super Bravo Limited (fifth defendant) was done in bad faith and a violation of Omokhide’s fiduciary duty to Arik Air Limited as a whole imposed by section 553 of CAMA 2020.
The founder of Arik Air, Sir Johnson Arumemi Ikhide, and his wife, Mary Arumemi Ikhide (Plaintiffs) had filed had upon the originating motion summon dated December 14, 2021 prayed the court that the duty imposed on the first defendant (Kamilu Alaba Omokhide) by section 553 of the CAMA 202O to act in the best interest of Arik Air Limited as a whole includes the duty to act in the best of the plaintiffs (Arumemi and Mary Ikhide) as members of Arik Air Limited.
The plaintiffs claimed that the transfer of Arik Air Limited assets to NG Eagle (third defendant) and to Super Bravo Limited (fifth defendant) “was done in bad faith and a violation of Omokhide’s (first defendant) the fiduciary duty to Arik Air Limited as imposed by section 553 of the CAMA 2020â€.
The plantiffs also sought a declaration that Omokhide, the Receiver/Manager appointed by AMCON is liable for any losses suffered by Arik Air Limited and its members as a result of the transfer of Arik’s assets to NG Eagle Limited.
The Arumemi Ikhide’s furthet sought a declaration that by virtue of section 533(1) of the CAMA 2020, Omokhide is an agent of AMCON, stating that the second defendant AMCON is vicariously liable for the acts of Omokhide.
The plaintiffs noted and sought a declaration that in spite of the appointment of Omokhide as Receiver/Manager of Arik Air Limited, the organs of Arik Air Limited including directors and shareholders subsist.
Other declarations by the plaintiffs are that the directors and shareholders of Arik Air Limited, including the plaintiff (Arumemi-Ikhide and Mary Ikhide), still have rights and powers regarding Arik Air Limited; setting aside the transfer of Arik\s assets and a perpetual injunction restraining Omokhide to the fifth defendant from further transferring the airline’s assets to NG Eagle.
In a certified true copy paper of the judgement dated March 31, 2023, the court noted that Kamilu Alaba Omokhide (First defendant), Receiver Manager of Arik Air failed to act in accordance with section 553 of the Companies and Allied Matters Act 2020.
Justice Lewis-Allagoa, ruled that the duty imposed on the first defendant (Omokhide) by section 553 of CAMA 2020 to act in the best interest of Arik Air Limited as a whole includes the duty to act in the best interest of the plaintiffs as members of Arik Air Limited.
The court ruled that the transfer of Arik Air Limited assets to NG Eagle Limited, Super Bravo Limited (fifth defendant) was done in bad faith and a violation of Omokhide’s fiduciary duty to Arik Air Limited as a whole imposed by section 553 of CAMA 2020.
