The Federal High Court sitting in Lagos has upheld an arbitral award of $196,330 against a Nigerian firm, CG Biostadt and in favour of a Pakistani firm, Ferozons Laboratories Limited.

The arbitral award was made by an arbitrator and advocate, Mr. Haroon Dugal, of 73, Bridge Colony Cantt, Lahore, Pakistan.

Justice Akintayo Aluko, who affirmed the award, also granted an order entering the award of December 28, 2017, as the judgment of the Federal High Court.

The judge made the order following Ferozsons Laboratories’ application filed by its counsel, Aloy Ezenduka.

The firm, as plaintiff, had informed the court that the defendant – CG Biostadt – was indebted to it and had become unable to pay the debts.

The plaintiff contended that it was its right to “mitigate, ameliorate and protect itself from avoidable losses by bringing this application on time before the defendant goes into liquidation or a Receiver/Manager is appointed to oversee the affairs of the respondent.”

The plaintiff said it had satisfied the precondition under Sections 31 and 51 of the Arbitration and Conciliation Act, 2004 and was entitled to the kind consideration of the court to recognise and enforce the Arbitral Award made by Dugal on December 28, 2017.

But the defendant, through its counsel Richard Oguntade contended among others that the applicant’s Notice of Arbitration was premature as it had not fully complied with Clause 24.1 of the distribution agreement between the parties to the effect that the disputes between them shall be settled in the first instance amicably between them.

It argued further that Dugal’s appointment as the sole Arbitrator is a breach of Clause 24.1 of the distribution agreement, adding that Dugal lacked the jurisdiction to have made the award.

It prayed the court to dismiss the suit.

After hearing the counsel, the court upheld Ezenduka’s argument.

Justice Aluko held: “Going by the affidavit evidence and documentary exhibits placed before the court by the Plaintiff, it has sufficiently met and complied with the above provisions of Section 31 of the Act and order 52, rule 16 of the extant civil Procedure rule of this court.

“The Plaintiff is entitled to the reliefs in its motion ex parte but converted into motion on notice dated 26 March, 2018.

Accordingly, reliefs 1 and 2 are hereby granted. Relief 3 is declined.“

An order for leave of the court to recognise and enforce the arbitral award made by Barrister Haroon Dugal, Advocate of the high court, having an office at 73 Bridge Colony Lahore Cantt, Pakistan, an Arbitrator in accordance with clause 24 of the agreement dated 9th of June 2010 in the same manner as a Judgement or order of the Federal High court.
An order entering the award dated 28th December 2017 as the Judgment of the court.

“Cost of this action assessed in the sum of Five Hundred Thousand Naira (N500,000) only is awarded in favour of the Plaintiff against the defendant.”