…Airline kicks

 

By Sade Williams 

 

The Nigerian Airspace Management Agency (NAMA) on Tuesday said Arik Air fleet was grounded by the Agency over a debt of $2.5million owed Atlas Petroleum International Ltd.

The agency in a statement by Alhaji Abdullahi Musa, Director, Public Affairs and Consumer Protection, said it only complied with Supreme court order by grounding Arik Air aircraft fleet, urging the parties involved to resolve their issues as quickly as possible so it can resume flight operations.

But Arik Air management has kicked against the grounding saying it is in disobedience to court order.

“We have decided to comply with the effect of the Supreme Court order, by grounding the aircraft (subject of dispute) so that they are not taken out of the jurisdiction of the court or tampered with in a way as to frustrate the courts.”, the Agency said.

According to NAMA, on the 19th day of July, 2024, the enforcement department of the FCT High Court enforced an Order made by the Court regarding a debt of $2.5 million owed by Arik Airline to one Atlas Petroleum International Ltd. by attaching their aircraft, adding that Arik was further given a notice of Public Auction of the planes by the Court which was slated to hold on the 26th day of July 2024 if they fail to pay the Judgment debt.

All these, the Agency said were served on it and also on  the Minister of Aviation.

Furthermore, the records with NAMA show that on the 8th day of March, 2016, the Judgment Debtor, Arik Air appealed the decision of the High Court of Lagos State entering judgment against it to the Court of Appeal and on 30th September, 2021 but the appeal was dismissed by the Court of Appeal in a unanimous decision with cost.

“Arik Air again appealed to the Supreme Court for leave to appeal the decision of the Court of Appeal, and on the 9th day of January, 2024, the Supreme Court, per Okoro, J.S.C., delivered its Ruling dismissing the Judgment Debtor’s application for leave to appeal.

“The Judgment Creditor registered the Judgment of the Lagos State High Court in The High Court of FCT and On the 26th day of June, 2024, Honorable Justice O. A. Adeniyi, then sitting in Court 8, Maitama, Abuja) made an order after hearing Motion No: M/9785/2024 filed on behalf of Atlas Petroleum attaching all the moveable properties belonging to the Judgment Debtor, including the Judgment Debtor’s aircraft with Registration No: B737-700/ 5N-MJF, B737-800/ 5N-MJQ, DASH8-Q400 and 5N-BKX in satisfaction of the judgment debt. Copies of the Order and Certificate of Judgment were also served on us and the Minister.

“We understand too that Arik has obtained an exparte order stopping further to execution of the order, though we have not been formally served. In the circumstances, since the first execution took place by attaching the aircraft, further execution by way of sale can be halted whilst the parties go back to court to resolve the issues. However, in order to preserve the subject matter of the present dispute which are the aircrafts in question (the res), which have already been attached, we have decided to comply with the effect of the Supreme Court order, by grounding the aircrafts (subject of dispute) so that they are not taken out of the jurisdiction of the court or tampered with in a way as to frustrate the courts.

“The parties to the dispute are encouraged to resolve their issues as quickly as possible so that the Arik aircrafts in question can resume flight operations.”, it stated.

Meanwhile, Arik Air said the decision to ground its fleet is in disobedience to ongoing judicial processes.
It stated that on February 26, 2016, a judgment was made in favor of Atlas Petroleum International Limited and Engineer Arthur Eze.
It said however, that there is an ongoing case in the Federal High Court, where Asset Management Corporation of Nigeria (AMCON) is asserting its secured interest in Arik’s assets.
“Despite this, a writ of attachment was issued on July 18, 2024, targeting our Aircraft, subsequent to which, further to an originating motion filed by AMCON, the High Court of the FCT on July 25, 2024 clearly instructed all parties to maintain status quo. We therefore are perplexed as to the grounding of our fleet, which is an overreach of the ongoing judicial processes and directives of court.
“We believe this action undermines the rule of law and sets a dangerous precedent, prioritizing unsecured private interests over the public good and the rights of secured creditors. We are committed to following the legal process and have full faith in the judiciary to resolve these matters fairly.”, a statement signed by Captain Roy Ilegbodu, Chief Executive Officer, Arik Air (In Receivership) said.

 

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