The Supreme Court of Nigeria has allowed the appeal filed by Nestoil and Neconde Energy Limited, overturning a Court of Appeal decision that had disqualified their legal representatives, Chief Wole Olanipekun (SAN) and Muiz Banire (SAN), from the case.
In its judgment, the apex court held that since the receivership being contested is itself under legal challenge, the companies’ Board of Directors retains the authority to appoint legal counsel for matters relating to that dispute.
The court further ruled that permitting lawyers appointed by the Receiver/Manager to simultaneously represent the companies would create a conflict of interest and amount to a legal inconsistency.
According to the judgment delivered by Justice Idris, the involvement of FBNQuest Merchant Bank and First Trustees who appointed the Receiver/Manager complicated the arrangement, particularly where counsel linked to the receivership also sought to act for the companies.
The court stated that such an arrangement would undermine fairness, independence, and the integrity of legal representation.
With the ruling, the Supreme Court restored the right of Nestoil and Neconde to be represented by their chosen legal counsel in the ongoing dispute.
Further details of the judgment are expected to emerge as proceedings continue.
