Aircraft belonging to Arik Air have been grounded by Nigerian aviation authorities due to a disputed $2.5 million debt.
On Tuesday, the Nigerian Airspace Management Agency (NAMA) revealed that this action followed an order issued by the enforcement department of the FCT High Court. The order pertains to a $2.5 million debt that Arik owes to Atlas Petroleum International Ltd. NAMA stated, “On July 19, 2024, the enforcement department of the FCT High Court executed an order regarding a $2.5 million debt owed by Arik Airline to Atlas Petroleum International Ltd., resulting in the attachment of their aircraft. Additionally, Arik was notified that a public auction of the planes would occur on July 26, 2024, if the judgment debt was not settled. These notices were served to our agency and our Supervising Minister, the Minister of Aviation.
According to the records, Arik appealed a decision from the High Court of Lagos State, which had entered judgment against it on March 8, 2016, to the Court of Appeal. This appeal was dismissed by the Court of Appeal on September 30, 2021, in a unanimous decision, which also imposed costs. Subsequently, Arik sought leave to appeal to the Supreme Court, but on January 9, 2024, the Supreme Court, per Justice Okoro, dismissed Arik’s application for leave to appeal.
The judgment from the Lagos State High Court was registered by the judgment creditor in the High Court of FCT. On June 26, 2024, Honorable Justice O. A. Adeniyi, then presiding in Court 8, Maitama, Abuja, issued an order after hearing Motion No: M/9785/2024 filed on behalf of Atlas Petroleum. This order attached all movable properties of the judgment debtor, including aircraft with registration numbers B737-700/5N-MJF, B737-800/5N-MJQ, and DASH8-Q400/5N-BKX, in satisfaction of the judgment debt. Copies of the order and certificate of judgment were served to us and the Minister.
While we understand that Arik has obtained an ex parte order to halt further execution of the order, we have not been formally served. In light of this, since the initial execution involved attaching the aircraft, further execution via sale can be suspended while the parties return to court to resolve the issues. Nevertheless, to preserve the aircraft in question (the res), which have already been attached, we have decided to comply with the Supreme Court’s effect by grounding the aircraft to prevent them from being taken out of the court’s jurisdiction or tampered with in a manner that could frustrate the courts.
Furthermore, the Minister, being a Senior Advocate of Nigeria and a member of the Inner Bar, understands the implications of the Supreme Court order dismissing the motion for leave to appeal. He will not jeopardize his legal practitioner license or his privilege by engaging in actions that could undermine the Supreme Court of Nigeria’s order. The parties involved are encouraged to resolve their issues swiftly so that Arik’s aircraft can resume flight operations.
Source: channelstv.com
