N17bn debt allegation: Afex challenges court jurisdiction, contempt proceedings stalled

The planned arraignment of Afex Commodity Exchange and some of its principal officers before a federal high court sitting in Lagos over alleged contempt of court has failed as the alleged defendants challenged the jurisdiction of the court to proceed on the matter.

Justice Chukwujekwu Aneke had on May 31, 2024, granted a motion ex parte in Suit FHC/L/CS/911/2024, and cited AFEX and its principal officers for contempt of court following their alleged disobedience to a court order authorising Guaranty Trust (GTBank) to take over the funds and assets belonging to Afex Commodities Exchange following its inability to pay N17,808,452,467.107 (billion) loan facilities granted by the bank.

At the resumed hearing of the matter, Ade Adedeji (SAN) appeared for the plaintiff, while Prof. Wale Olawoyin (SAN) led a team of lawyers for the defendants.

Addressing the court, Prof. Olawoyin informed the court of a Notice of Preliminary Objection challenging the jurisdiction of the court to entertain the contempt proceedings initiated against Afex Commodity Exchange and its directors for alleged non-compliance with the ex parte interim order of injunction dated May 27, 2024.

He stated that the Notice of Preliminary Objection was brought pursuant to Section 36 of the Constitution (As Amended) and under the inherent jurisdiction of the court and has been served on the plaintiff, urging the court to give it priority in view of the jurisdictional issues raised.

He submitted that when the jurisdiction of the court is being challenged, parties in alleged contempt need not be physically present in court until the issue of jurisdiction is resolved by the court.

Olawoyin stated that the defendants have filed an affidavit of fact before the court on the whereabouts of the directors of Afex Commodity Exchange and why they were not in court.

However, in his reply, the plaintiff’s counsel, Ade Adedeji, argued that contempt proceedings are quasi-criminal, hence all the alleged defendants must be physically present in court.

He submitted that until the people in contempt appear in court, they cannot be heard through their lawyer.

After taking arguments from both parties, Justice Aneke adjourned the matter till June 27 for continuation of the hearing.

In their preliminary objection before the court, the defendants are asking the court to either strike out the contempt proceedings or decline jurisdiction to entertain any contempt proceedings in relation to, connected with, or arising from the Notice of Disobedience of Court Order (Form 48) dated May 31, 2024, or any alleged non-compliance with the ex parte order of the court dated May 27, 2024.

They argued that the alleged contemptuous act was done outside the precincts of the Court, making it a contempt ex facie curiae.

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