Appeal Court Orders Retrial Of $600m Garnishee Order Against FCTA

Federal Capital Territory Administration (FCTA) has won its appeal against the verdict of the FCT High Court, which held the FCTA liable for the payment of over $600 million with interest to Kohath Property Development Company Limited for alleged breach of contract.

The Appeal Court on Tuesday delivered judgment in the appeal filed by Joe Gadzama (SAN) on behalf of the minister of the FCT and others, where it directed the retrial of the case by the lower court.

It was discovered that, despite an order of stay of execution pending the determination of the appeal by the FCT High Court (the same court which had delivered the judgment), and an appeal against the said decision, Kohath had proceeded to commence enforcement of the said judgment.

This made its action liable to contempt of court, Kohath approached Justice Aguma of the Rivers State High Court, Bori, in an unprecedented manner obtained garnishee absolute orders toward enforcement of the judgment.

Despite its attention being drawn to the fact that there was a pending appeal and an order for stay of execution pending the outcome of the appeal by the same court that delivered the judgment, the Rivers State High Court made its orders.

However, the Court of Appeal on Tuesday settled the issue by setting aside the judgment of the FCT High Court, which had awarded the sum of over $600 million against the FCTA and upon which Kohath had commenced enforcement.

Justices O. E. Williams-Dawodu, U. A. Ogakwu and J. Y. Tukur who heard the appeal remitted the matter, in its judgement to the FCT High Court for expedient hearing.