Justice Pat Ajoku of the Federal High Court, Lagos, has granted Guaranty Trust Bank (GTBank) leave to serve the business mogul and Aare Musulumi of Yorubaland, Alhaji Abdulazeez Arisekola-Alao, by substituted means, all processes filed by the bank in the bankruptcy suit it instituted against him.
In particular, Justice Ajoku ordered that the documents be pasted at the gate of his usual or last known abode at Arisekola Villa, Oluwo Kekere Bashorun, Ibadan.
He gave the order following an ex-parte application moved by Norris Quarkers that the bankruptcy notice, affidavit of truth of statement and any other processes that may be issued in the suit instituted against Arisekola-Alao, be served on him by substituted means.
The judge also granted the bank leave to substitute the affidavit of truth of statement in the petition deposed to by a staff of the bank, Soga Adewale, on May 19, 2011 with the one deposed to on June 7, 2011.
The court further held that the affidavit of truth of statement deposed to by Adewale on June 7 already in the custody of the court be considered properly filed.
GTB had filed the suit against Arisekola, asking the court to declare him bankrupt over his inability to pay N6.9 billion loan facilities granted to his company.
According to the suit, the bank also wants the court to direct that all assets, interests and holdings of Arisekola-Alao, either held personally or through third parties and privies, be liquidated and the proceeds applied towards offsetting his debts
It further urged the court to divest the alleged debtor of all shares, interests and holdings in all public and private companies.
The bank is also praying the court to issue a perpetual injunction restraining Arisekola-Alao from being appointed as a director in any public or private company in Nigeria.
It added that it was imperative for the court to make the orders because Arisekola-Alao is also indebted to many banks, adding that a large number of his assets have been pledged to these banks as security for the loans.
It noted that the alleged debtor was on the edge of insolvency, having lost billions of naira in his businesses and was making efforts to dissipate assets as a result of massive debts owed to it and other banks.
The bank further stressed that Arisekola-Alao is currently selling and transferring his assets to third parties, and that the businessman had perfected plans to delay the claims by leaving the country or remaining out of public domain to be out of reach.
According to the petition filed on behalf GTB through its counsel, Olisa Agbakoba (SAN), the bank stated that in its ordinary course of banking relations, it granted various loan facilities to Lister Flour Mills Ltd and Lister Oil and Gas Limited, both companies owned by the business mogul to facilitate their operations.
The bank argued that at all material times, the said facilities, including the consolidated loan, were granted based on the personal guarantee executed by Arisekola-Alao to repay the loans of N8,259, 198,631, adding that as at today, the outstanding indebtedness on both facilities stand at N6, 917,159,044.
It stated that despite several demands to both companies, and calls on the personal guarantor, they have refused to fulfil their obligations to it under the agreements to pay, despite various demands by the petitioner.
However, Arisekola-Alao has filed a preliminary objection to the suit.
In his motion on notice for preliminary objection filed by his team of lawyers, comprising Mr Oluwarotimi Akeredolu (SAN), Alhaji Lasun Sanusi and Chief Lowo Obisesan, he prayed the court for an order setting aside the order.
He also prayed the court for an order striking out or dismissing the bank's claims for lack of jurisdiction.
The businessman also prayed that the suit was an abuse of court process in an eight-point affidavit in support of the motion on notice deposed to by a legal practitioner, Mr Olaide Balogun.
The deponent averred that Alhaji Arisekola-Alao had, on May 16, 2011, filed an action at the Federal High Court, Ibadan, against the bank in suit number FHC/IB/CS/36/2011.
Balogun further said that despite the pendency of the suit in the Ibadan judicial division of the Federal High Court, GTBank preceded to institute another suit in the Lagos division of the court, seeking relief similar to the one filed in Ibadan and which had the same cause of action to wit; dispute bank facility.