Company Law: Winding Up Order; Liquidator; Does an appointment of a liquidator impair a creditor's or a contributor's right to sue for the protection of their rights

PEFTI NIGERIA LIMITED v. INI OKON UDO UTUK & ANOR

SUPREME COURT OF NIGERIA

OKORO; AUGIE; JAURO; ABUBAKAR; AGIM; JJ.SC

Ini Okon Udo Utuk (the 1st Respondent's) father, one Okon Udo Utuk (now late and substituted with the 1st Respondent) filed a suit on 11th February 1993 wherein he petitioned the Federal High Court (trial court) for the winding up of Utuks Construction & Marketing Company Limited. The petition was heard, and the company was wound up by order of the court on 26th June 1995. While the said petition was pending at the trial court some landed properties belonging to the company were sold off by an auctioneer appointed by Mercantile Bank of Nigeria Plc. to Pefti Nigeria Limited (the Appellant) in satisfaction of a Mortgage Deed executed between the company and the bank.

The 2nd Respondent who was appointed the provisional liquidator, to take over and manage the properties of the company in the interest of creditors and contributors, upon becoming aware of the sale of the properties in a public auction, filed a motion on notice seeking an order to void the advertisement and sale of the properties. The motion also sought an order vesting the properties in the custody of the Provisional Liquidator for the purpose of valuation.