Legal tussle stalls New Tejuosho Market completion
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The expectations that business will soon commence at the New Tejuosho Market may not come through any time soon as the project financiers have intensified their legal battle that has been running for several years.
The NewTejuosho Market
The original market is located between Ojuelegba Road and Tejuosho Street in the heart of Lagos Mainland and was rated as one of the busiest markets in Lagos before it was gutted by fire twice in 2004 and 2007, when it was completely burnt down.
The cause of both fire incidents remains unknown but shop owners reportedly lost goods valued at several millions of naira.
The incidents prompted the state government to take over the property and subsequently gave out the first phase of the redevelopment as a concession to Stormberg Engineering Company Limited.
The reconstruction project, which includes the expansion and transformation of the market to an ultra-modern facility, has been on since then.
However, the financiers, First Bank of Nigeria Plc and Access Bank Plc, have been in court over the asset as both were said to have availed Stormberg separate credit facilities for the reconstruction of the market.
In a letter dated June 4, 2014, counsel for Access Bank, Mr. Kunle Ogunba, stated that the concession of the market was obtained through the funds given to Stormberg by his client.
The letter read in part, “Via a series of applications, Stormberg Engineering Company Limited applied to our client for the availment of credit facilities to further its business, which include project development as exercised in the New Tejuosho Market.
“Upon availment of the said facilities, the company charged all its fixed and floating assets to our client via a Deed of All Assets Debenture, the latter was duly registered at the registry of the Corporate Affairs Commission. It was, indeed, a condition in the said debenture that upon any default by the company, the registered debenture shall become enforceable by our client.”
According to the letter, when it became clear that the company was unable to service the facility, Access Bank appointed Ogunba as its receiver and manager over the assets of Stormberg, including the New Tejuosho Market.
It was gathered that a few months ago, a Federal High Court in Lagos affirmed Ogunba’s appointment by Access Bank as the manager of the property pending when the proceeds from its sale would be used to offset the developer’s indebtedness to the bank.
The ruling by Justice Okon Abang set aside an order obtained from another judge of the Federal High Court, which affirmed First Bank Plc’s appointee as the receiver/manager for the property.
First Bank was said to have on March 13, 2012 obtained an order from a then serving judge of the Federal High Court, Lagos, Justice Okechukwu Okeke, who is now retired, affirming its appointee as the receiver/manager for the property.
However, the Court of Appeal, Lagos Division, on June 16 refused an oral application by First Bank, urging it to stop the alleged contempt proceedings filed by Ogunba against the bank in respect of the dispute.
It was gathered that the counsel for First Bank, Mr. Kemi Balogun, had in an oral application, urged the court to give an order restraining the lower court from proceeding with the contempt proceeding filed by Access Bank pending the hearing of its appeal, while Ogunba urged the court to discountenance the application with the argument that First Bank was not a party to the suit at the lower court.
At the hearing of the appeal, the court presided over by Justice Sidi Bage, adjourned the matter till October 7, 2014 for the hearing of all pending applications.
When our correspondent visited the market, construction work was still going on alongside the reconstruction of the access road between Yaba and Ojuelegba.
The ultra-modern shopping complex at completion is expected to have 2,383 shops on four floors with 216 parking slots.
It was gathered that it would also have modern amenities, including a police post, waste management service, fire-fighting equipment, banking space, eateries, water scheme and a sick bay.
.
Source:Punch Newspaper
The expectations that business will soon commence at the New Tejuosho Market may not come through any time soon as the project financiers have intensified their legal battle that has been running for several years.
|
| The NewTejuosho Market |
The original market is located between Ojuelegba Road and Tejuosho Street in the heart of Lagos Mainland and was rated as one of the busiest markets in Lagos before it was gutted by fire twice in 2004 and 2007, when it was completely burnt down.
The cause of both fire incidents remains unknown but shop owners reportedly lost goods valued at several millions of naira.
The incidents prompted the state government to take over the property and subsequently gave out the first phase of the redevelopment as a concession to Stormberg Engineering Company Limited.
The reconstruction project, which includes the expansion and transformation of the market to an ultra-modern facility, has been on since then.
However, the financiers, First Bank of Nigeria Plc and Access Bank Plc, have been in court over the asset as both were said to have availed Stormberg separate credit facilities for the reconstruction of the market.
In a letter dated June 4, 2014, counsel for Access Bank, Mr. Kunle Ogunba, stated that the concession of the market was obtained through the funds given to Stormberg by his client.
The letter read in part, “Via a series of applications, Stormberg Engineering Company Limited applied to our client for the availment of credit facilities to further its business, which include project development as exercised in the New Tejuosho Market.
“Upon availment of the said facilities, the company charged all its fixed and floating assets to our client via a Deed of All Assets Debenture, the latter was duly registered at the registry of the Corporate Affairs Commission. It was, indeed, a condition in the said debenture that upon any default by the company, the registered debenture shall become enforceable by our client.”
According to the letter, when it became clear that the company was unable to service the facility, Access Bank appointed Ogunba as its receiver and manager over the assets of Stormberg, including the New Tejuosho Market.
It was gathered that a few months ago, a Federal High Court in Lagos affirmed Ogunba’s appointment by Access Bank as the manager of the property pending when the proceeds from its sale would be used to offset the developer’s indebtedness to the bank.
The ruling by Justice Okon Abang set aside an order obtained from another judge of the Federal High Court, which affirmed First Bank Plc’s appointee as the receiver/manager for the property.
First Bank was said to have on March 13, 2012 obtained an order from a then serving judge of the Federal High Court, Lagos, Justice Okechukwu Okeke, who is now retired, affirming its appointee as the receiver/manager for the property.
However, the Court of Appeal, Lagos Division, on June 16 refused an oral application by First Bank, urging it to stop the alleged contempt proceedings filed by Ogunba against the bank in respect of the dispute.
It was gathered that the counsel for First Bank, Mr. Kemi Balogun, had in an oral application, urged the court to give an order restraining the lower court from proceeding with the contempt proceeding filed by Access Bank pending the hearing of its appeal, while Ogunba urged the court to discountenance the application with the argument that First Bank was not a party to the suit at the lower court.
At the hearing of the appeal, the court presided over by Justice Sidi Bage, adjourned the matter till October 7, 2014 for the hearing of all pending applications.
When our correspondent visited the market, construction work was still going on alongside the reconstruction of the access road between Yaba and Ojuelegba.
The ultra-modern shopping complex at completion is expected to have 2,383 shops on four floors with 216 parking slots.
It was gathered that it would also have modern amenities, including a police post, waste management service, fire-fighting equipment, banking space, eateries, water scheme and a sick bay.
.
Source:Punch Newspaper
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