Nigerian regulators obey court order, ground Arik Air fleet over $2.5m debt

*The Nigerian Airspace Management Agency explains the grounding of the aircraft belonging to Arik Air was sequel to a Supreme Court order by the enforcement department of the FCT High Court, regarding the company’s $2.5 million debt owed to Atlas Petroleum International Limited

Isola Moses | ConsumerConnect

The Nigerian aviation authorities have grounded aircraft belonging to Arik Air over a controversial $2.5 million debt.

ConsumerConnect learnt the Nigerian Airspace Management Agency (NAMA), which affirmed this development Tuesday, July 30, 2024, said the move was a sequel to an order by the enforcement department of the FCT High Court, regarding a debt of $2.5 million the local aviation owed to Atlas Petroleum International Limited.

NAMA stated: “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.

“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 were served on our agency and also on our Supervising Minister, the Minister of Aviation.”

It also said: “The records show that on the 8th day of March, 2016, the Judgment Debtor (ARIK) appealed the decision of the High Court of Lagos State entering judgment against it to the Court of Appeal, and on 30th September, 2021, the appeal was dismissed by the Court of Appeal in a unanimous decision with cost.

“ARIK 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 aviation regulatory agency stated: “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 EXECUTION of the order, though we have not been formally served.”

NAMA said: “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 aircraft 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 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.

“Furthermore, the Minister, being a member of the Inner Bar himself, understands the implication of the Supreme Court Order dismissing the motion for leave to appeal, and will not risk his licence as a legal practitioner or his privilege as a Senior Advocate of Nigeria by engaging in acts that will frustrate an order of the Supreme Court of Nigeria.

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

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