Apex court rules the dispute was contractual not maritime, declaring the seizure unlawful and awarding ₦5 million in costs against First Bank……
The Supreme Court has overturned a lower court decision that allowed the seizure of an oil vessel and its crude oil cargo belonging to General Hydrocarbons Limited (GHL), delivering a major legal victory for the energy company in its dispute with First Bank of Nigeria.
In a unanimous decision delivered by a five-member panel, the apex court nullified the judgment of the Court of Appeal and ordered that the vessel, along with the proceeds realised from the sale of its crude oil cargo, be returned to GHL.
The ruling stems from a long-running disagreement between General Hydrocarbons Limited and First Bank over an alleged breach of contract. However, the Supreme Court held that the nature of the dispute was purely contractual and financial, not a maritime matter.
According to the court, the Federal High Court erred when it assumed admiralty jurisdiction over the case, stressing that the issues before it did not qualify as a maritime dispute under the law.
The justices further ruled that First Bank had no legal basis to seize the vessel or dispose of its cargo as a means of recovering the alleged debt arising from the contractual disagreement.
By setting aside the earlier judgments, the Supreme Court reaffirmed that contractual disputes must be resolved through the appropriate legal channels and cannot be converted into maritime claims simply because an oil vessel is involved.
In addition to ordering the return of the vessel and the proceeds from the crude oil sale, the apex court awarded ₦5 million in costs against First Bank of Nigeria.
The judgment is expected to shape future disputes involving the intersection of commercial contracts and admiralty law, while reinforcing the limits of the courts’ jurisdiction in debt recovery cases involving maritime assets.
