Facts:

Following the revocation of Fortune International Bank Plc’s (FIB) banking licence by the Central Bank of Nigeria on 16th January 2006 for failing to meet the required ₦25 billion minimum capital base, the Nigeria Deposit Insurance Corporation (NDIC) was appointed as the Provisional Liquidator of the failed bank. Prior to the revocation, FIB had obtained a loan of over ₦2 billion from Union Bank Plc and had pledged its property, known as Fortune Towers located at No. 27/29 Adeyemo Alakija Street, Victoria Island, Lagos, as security.

In the course of its liquidation duties, NDIC attempted to take possession of Fortune Towers as part of FIB’s assets. However, it encountered resistance from Union Bank Plc and Cowrie Business Solutions Ltd., who claimed to have acquired the property through a sale conducted in July 2007. NDIC challenged the legality of this transaction, asserting that it was carried out while liquidation proceedings were ongoing and at a time when Cowrie was yet to be incorporated.
This led NDIC to institute Suit No. FHC/L/CS/663/2011 before the Federal High Court, Lagos, seeking declaratory reliefs to set aside the sale of the property. The trial court, in its judgment delivered on 14th December 2018, partially upheld NDIC’s claims. It held that while Fortune Towers was no longer part of FIB’s assets, the sale to Cowrie was invalid for having been made before Cowrie’s incorporation and without subsequent ratification. The court found that the sale was void for that reason and also declared certain notices to quit issued by Cowrie and Union Bank to be void.

Dissatisfied with aspects of the judgment, NDIC filed an appeal to the Court of Appeal, Lagos Division, with Union Bank and Cowrie as Respondents. However, on 20th February 2024, NDIC filed a Notice of Discontinuance of the appeal as it related to Cowrie. The Court of Appeal granted the application and struck out Cowrie’s name from the appeal.
In response, Cowrie filed an application at the Court of Appeal seeking leave to file a cross-appeal and to have it deemed properly filed. On the same day—25th June 2024—Cowrie also filed a separate appeal at the Supreme Court (Appeal No. SC/CV/552/2024), seeking an order to restore its name as the 2nd Respondent in the appeal that had been discontinued at the Court of Appeal.

These concurrent processes before the Court of Appeal and the Supreme Court, both concerning the same subject matter and involving the same parties, formed the basis of the contention by NDIC that Cowrie’s actions amounted to an abuse of court process. It was this contention that ultimately led to the hearing and determination of the appeal before the Supreme Court.