Justice J. K. Omotosho, of the Federal High Court, Port Harcourt, has dismissed a suit filed against a Port Harcourt based company, Dandico Woodman Nigeria Limited (DDNL)

The dismissal order was a result of an application filed by the counsel to the Director of DDNL, Ugonna Elenwoke urging the court to dismiss the suit as same was statute barred. .

The applicant, Asset Management Corporation of Nigeria had in the suit numbered FHC/PH/MISC/40/2017, claimed against Dandico Woodman Nigeria Limited and its director and prime promoter, Chief Daniel Orji, the sum of N102, 154, 979.76 being the current outstanding exposure of the loan granted to Dandico Woodman Limited as at January 2018 and guaranteed by Chief Daniel Orji. AMCON also claimed interest of 21% from January 30th, 2018 till judgment is delivered and 10% thereafter on judgment sum until final liquidation and N5 million as general damages for breach of contract.

Counsel to Chief Orji, Ugonna Elenwoke Esq had filed a motion urging the court to dismiss the suit on the grounds of being statute barred by the combined provisions of Sections 35(5) of the Asset Management Corporation (Amendment) Act 2015 and Section 16 of the Limitation Law of Rivers State, 1999. According to Mr. Elenwoke, the combined provisions of both laws were to the effect that no action for recovery of debt shall be brought after the expiration of five years from the date of the acquisition of the eligible bank asset which is when the cause of action is deemed in law to arise. Mr. Elenwoke further argued that since AMCON by its pleadings averred that it acquired the non performing loan in the suit as an Eligible Bank Asset from Union Bank of Nigeria in April 2011 and the suit was instituted in 2017 being a period of six years, same was statute barred and thus urged the court to dismiss the suit.

In his ruling on the 3rd day of November 2020, Justice Omotosho found as a fact that the action which ought to have been commenced on or before the 6th day of April 2016 was commenced on the 15th June 2017 and the action was clearly outside the prescribed 5 years for actions based on contract. The learned judge held that the suit was thus statute barred and irredeemable and proceeded to dismiss the suit.