From Suleiman Idris, Lagos
A Federal High Court in Ikoyi, Lagos has ordered that the sum of N5 billion be paid as compensation to Maevis Nigeria Limited over the breach of a revenue collection deal it had with the Federal Airport Authority of Nigeria (FAAN).
Justice Ibrahim Buba of Court 6 yesterday declared that Societe International Telecommunications Aeronautique is wrong to have entered into a contract with FAAN to replace Maevis in the collection of non-aeronautic revenue and therefore described the contract as invalid.
Maevis hitherto collected the revenue for FAAN before both parties were locked in disagreement over the sharing formula in relation to the four Airports, Murtala Muhammed Airport, Ikeja, Nnamdi Azikiwe Airport, Abuja, Mallam Aminu Kano Airport, Kano and Port-Harcourt Airport.
The Judge set aside all SITA agreement with FAAN and other agreements with any agency and directed SITA to pay N5 billon to MAEVIS.
He said SITA was willful and reckless in its conduct having bided for the contract and lost, yet went ahead to induce FAAN.
"SITA knew they were wrong, they were warned there was a court case and contempt proceeding.
"Yet, they were reckless, they went ahead to sign an invalid contract which is null and void."
Ibrahim said the inducement by SITA was proven and upheld that their criminal act with FAAN must not hold affirming the issue is simple; SITA is guilty of all matters they were accused of by MAEVIS.
Also, the court affirmed the declaration that the defendant's actions in willfully and intentionally procuring and or inducing FAAN to breach its subsisting agreement with the plaintiff is impacting on the plaintiff's ability to collect revenue due to the Federal Government of Nigeria pursuant to the facilities provided by the plaintiff under the agreement.
"A Declaration that any purported agreement or understanding for the provision of any Common Use Terminal Equipment ("CUTE") or similar equipment and or software application between the Defendants (or any of their subsidiaries affiliates, agents or representatives) or any other person apart from the Plaintiff and FAAN in respect of any or all of the four airports (already envisaged under the Plaintiff's subsisting agreement with FAAN) is invalid, unlawful, ineffective, null and void."
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The compensation was bound to come anytime at that moment so it's all good it came at the right time. Very good.