Download PDF
RULING This is a motion on notice dated 22nd February 2018 filed by the defendant. It is brought pursuant to Section 48(7) of the Asset Management Corporation of Nigeria (Amendment) Act 2015 and the inherent jurisdiction of the Court; and is praying for the following: 1) An order suspending proceeding in this suit. 2) And for further orders as the Court may deem fit to make in the circumstances. The grounds upon which this application is made are as follows: 1. That Asset Management Corporation of Nigeria (AMCON) appointed a receiver to manage the affairs of the judgment debtor. 2. That the judgment debtor is still in receivership. 3. That by virtue of Asset Management Corporation (Amendment) Act 2015 all proceedings against the judgment debtor are legally to be suspended. The application is supported by an affidavit sworn to by Asubike Okaro Legal Practitioner and a written address. In opposing the application, the claimant filed a counter affidavit which was sworn to by Benjamin Umudjoro on 5th March 2018 and a written address. The defendant filed a further affidavit on 17th May 2018. Counsel adopted their respective address which is incorporated in this Ruling. DECISION: I have carefully considered this application and the submissions of the counsel both oral and written. The claimant closed his case on 26th May 2016 and the matter was adjourned to October 24, 2016 for defence. The defendant was not prepared to defend the matter on that day and after two further adjournments, the defendant was foreclosed on 14th March 2017 and the matter adjourned for adoption of final address. It is at this stage of proceedings defence counsel has filed this application. Section 48(7) of the AMCON (Amendment) Act 2015 provides as follows: (7) Subject to Section 48(9) of this Act and on the publication of the notice referred to in Section 48(4) thereof, all judgments, claims, debt enforcement procedures existing or being pursued before the publication of the notice shall stand automatically suspended and be unenforceable against the debtor company for the shorter of a period of 1 year from the date of the publication of the notice or the period that the receiver continues to manage the affairs of the debtor company. Provided that claims relating to wages and other entitlements of existing staff of the debtor company or debtor entity and professional advisers shall not be so suspended. The claims of the claimant are for arrears of salary, leave allowance, pension deduction and tax deductions. These are claims that fall within the purview of Section 254C(1) of the 1999 Constitution Third Alteration Act. They relate to the wages and entitlements of the claimant who at the time of filing this suit had resigned his appointment with effect from April 30, 2014. The issues for determination are therefore: (i) Whether the provision of Section 48(7) of the AMCON (Amendment) Act 2015 is inconsistent with the provisions of Section 254C(1)(a) of the 1999 Constitution. (ii) Whether the Court can continue to proceed with this matter. Section 254C (1) (a) of the 1999 Constitution (Third Alteration Act 2010) is reproduced as follows: 254C – (1) Notwithstanding the provisions of sections 251, 257, 272 and anything contained in this Constitution and in addition to such other jurisdiction as may be conferred upon it by an Act of the National Assembly, the National Industrial Court shall have and exercise jurisdiction to the exclusion of any other court in civil causes and matters – (a) relating to or connected with any labour, employment. Trade unions, industrial relation and matters arising from workplace, the conditions of service, including health, safety, welfare of labour, employee, worker and matters incidental thereto or connected herewith. By virtue of the above provision, this Court has been conferred with exclusive jurisdiction to hear and determine civil causes and matters specified in Section 254C(1) (a – m). The Federal High Court derives its exclusive jurisdiction to hear and entertain matters arising from the operation of the AMCON Act from the provisions of Section 251 of the 1999 Constitution which is subject to the provisions of Section 254C(1). By the doctrine of the supremacy of the Constitution, the AMCON (Amendment) Act (2015) being a subordinate legislation is inferior to the Constitution which is the supreme law of the land. Section 1(3) of the 1999 Constitution as amended provides that if any law is inconsistent with the provisions of the Constitution, the Constitution shall prevail and that other law is void to the extent of the inconsistency. Consequently, the provisions of Section 48(7) of the AMCON (Amendment) Act 2015 in terms of unenforceability of the claims of the claimant and suspension of proceedings in this suit, or any other law or subordinate legislation which attempts to rob this Court of its exclusive jurisdiction must be regarded as inconsistent with the provisions of Section 254C(1) (a – m) of the 1999 Constitution (Third Alteration Act) and is void to the extent of the inconsistency. I so hold. See Ibidokun v Adaralode [2006] 12 NWLR (Pt. 727) 268, Nkwocha v Gov. Anambra State [1984] 1 SCNLR 634, Sylvia Ilodibe v Afribank Nigeria Plc (unreported) Suit No. NIC/LA/55/2011, Ruling delivered on January 27, 2012. The proceedings in this suit will continue till the determination of this matter. This application lacks merit and has been brought to waste time and delay the speedy determination of this matter. It is dismissed with costs of N20,000 awarded the claimant. The parties are to proceed to adopt final address. Ruling is entered accordingly ____________________________ Hon. Justice O.A. Obaseki-Osaghae