- Arik Loses After Long Legal Battle
By kawaekwune Jeffrey
The Nigerian Airspace Management Agency (NAMA) has grounded several aircraft belonging to Arik Airline due to an outstanding debt of $2.5 million. This action follows an order from the enforcement department of the Federal Capital Territory (FCT) High Court.
In a statement released on Tuesday, NAMA’s management explained that the court order was issued in relation to a debt owed by Arik to Atlas Petroleum International Ltd. “On the 19th day of July, 2024, the enforcement department of the FCT High Court enforced an Order made by the Court regarding a debt of $2.5 million owed by Arik Airline to Atlas Petroleum International Ltd. by attaching their aircraft. Arik was further given a notice of Public Auction of the planes by the Court, which was slated to hold on the 26th day of July 2024 if they fail to pay the Judgment debt. All these were served on our agency and also on our Supervising Minister, the Minister of Aviation,” the statement added.
The background of this case reveals a protracted legal battle dating back to 2016. On March 8, 2016, the Lagos State High Court entered a judgment against Arik, which was appealed by the airline. However, on September 30, 2021, the Court of Appeal dismissed Arik’s appeal in a unanimous decision. Arik then sought leave to appeal to the Supreme Court, which was also dismissed on January 9, 2024, by Justice Okoro, J.S.C.
Following these rulings, Atlas Petroleum registered the Lagos State High Court judgment with the FCT High Court. On June 26, 2024, Justice O. A. Adeniyi ordered the attachment of Arik’s moveable properties, including aircraft with registration numbers B737-700/5N-MJF, B737-800/5N-MJQ, DASH8-Q400, and 5N-BKX, to satisfy the judgment debt.
However, NAMA’s statement also noted that Arik has obtained an ex parte order to halt further execution of the initial order. “We understand too that Arik has obtained an exparte order stopping FURTHER EXECUTION of the order, though we have not been formally served. In the circumstances, since the first execution took place by attaching the aircraft, further execution by way of sale can be halted whilst the parties go back to court to resolve the issues. However, in order to preserve the subject matter of the present dispute which are the aircraft in question (the res), which have already been attached, we have decided to comply with the effect of the Supreme Court order, by grounding the aircraft (subject of dispute) so that they are not taken out of the jurisdiction of the court or tampered with in a way as to frustrate the courts.”
The statement emphasized the importance of adhering to the Supreme Court’s order and encouraged the parties involved to resolve their issues promptly. “The Minister, being a member of the Inner Bar himself understands the implication of the Supreme Court Order dismissing the motion for leave to appeal and will not risk his license as a legal practitioner or his privilege as a Senior Advocate of Nigeria by engaging in acts that will frustrate an order of the Supreme Court of Nigeria. The parties to the dispute are encouraged to resolve their issues as quickly as possible so that the Arik aircraft in question can resume flight operations.”
