The Federal High Court sitting in Lagos has ordered substituted service of Form 49 on directors of Western Metal Products Company over alleged disobedience of a subsisting court order in a dispute involving United Bank for Africa Plc.
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Justice Akintayo Aluko made the order following contempt proceedings commenced by UBA against the directors of WEMPCO.
The affected directors are Lewis Shui Ngor Tung, Phillip Shui Chei Tung, M.A. Ola Yusuf, Tung Lawrence Blake, Aali Aare Hadji Tokunbo, Paul Shui Po Tung, Tung Robert, C.L. Ip and Taiwo Alli.
Form 49 is a process used in contempt proceedings to require a person alleged to have disobeyed a court order to appear before the court and show cause why an order of committal should not be made against him.
UBA’s counsel told the court that the directors and some members of staff of WEMPCO allegedly took steps aimed at frustrating or disobeying an earlier order of the court.
The bank consequently urged the court to permit substituted service of the Form 49 processes on the directors to compel their appearance before the court.
Justice Aluko granted the application for substituted service.
The order does not amount to a finding that the directors are already guilty of contempt. Rather, it enables the contempt proceedings to move forward and gives the affected directors an opportunity to appear before the court and show cause why committal orders should not be made against them.
The contempt proceedings arose from an earlier order made by the court in August in relation to WEMPCO’s alleged indebtedness to UBA in the sum of ₦61,445,695,993.76.
In that earlier ruling, the court granted a Mareva injunction over some of WEMPCO’s assets and appointed a receiver/manager in connection with the disputed debt.
A Mareva injunction is a preservative order restraining a party from disposing of or transferring specified assets pending the determination of a substantive dispute.
UBA subsequently returned to court alleging that steps had been taken by WEMPCO’s directors and staff in disregard of the order.
The bank is therefore seeking to have the directors answer to the alleged disobedience through the contempt process.
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