NLNG Accuses NIMASA Of Scuttling Out of Court Settlement

The Nigerian Liquefied and Natural Gas (NLNG) Limited has accused the Nigerian Maritime Administration and Safety Agency (NIMASA) of frustrating its move to amicably resolve the protracted dispute between them.
NLNG and NIMASA have been locked in a fierce battle over the issue of non-payment of certain statutory levies and charges which NIMASA claims are due to it from NLNG.
On Thursday, Justice Mohammed Idris of the Federal High Court Lagos had granted a short adjournment for the parties to conclude their out of court settlement talks, a development that prompted the court to fix Friday for the report of settlement.
When the case however came up, Counsel to NLNG, Mr. Wale Akoni (SAN) told the court that settlement talks had failed.
In an interview with Channels TV, Mr. Akoni alleged that NIMASA actually frustrated NLNG’s settlement efforts.
“It appears to us that NIMASA is bent on stifling our business. NLNG has paid dividends to the Federal Government in billions.
“We even offered to continue to pay but they rejected our offer,” Akoni explained.
Justice Idris, it would be recalled, had on June 18, 2013 in Suit FHC/L/CS/847/2013 between NLNG and Attorney General of the Federation and Global West Vessels Specialists, granted an ex-parte order restraining the defendants from charging, imposing, demanding or collecting the 3% of gross freight earnings or any other sums further to section 15(a) of NIMASA Act 2007 on all of NLNG’s international inbound or outbound cargo ships owned, contracted or subcontracted by it.
After Mr. Akoni’s submission, lawyer representing the Federal Government, Fabian Ajogwu (SAN) moved his application seeking to discharge the ex-parte order on the grounds that the order was essentially made against NIMASA, which was not joined as party to the suit.
NIMASA has also filed an application seeking to be joined as a party to the suit.
According to Mr. Ajogwu’ application, the government contended that NIMASA is a body corporate with statutory powers to sue and be sued in its own name and that its non-inclusion as a party was a violation of the principles of fair hearing.
Ajogwu added that the fact that the other side was not heard before the order was made was fatal to the case of NLNG.
He further contended that an order cannot be made against a person who is not a party to the suit as it is necessary that such party must be given the opportunity to present its case.
Besides, Mr Ajogwu added that the dispute that gave rise to the suit was essentially between NLNG and NIMASA, and that the non-inclusion was a deliberate move by NLNG to circumvent the provision of Section 53(2) the Nigerian Maritime Administration and Safety Agency Act of 2007, which makes it mandatory for an intending plaintiff to give the statutory body a 30-day pre-action notice.
According to Ajogwu: “The reliefs granted the Plaintiffs ex-parte are indeed, in form and substance essentially the reliefs being sought in the substantive suit;” and that the Court would not have granted the exparte order if not for the misrepresentation, concealment and non-disclosure of material facts by NLNG.
Justice Idris has fixed July 8, 2013 for ruling.