Receivership, as a critical component of company law, often brings into focus the delicate balance between creditor rights and debtor obligations. In the notable case of Temple Mills Ltd v Abdul Malik Ora Ebunike & 2 Ors, this balance was tested when Temple Mills Ltd (the Plaintiff), having defaulted on a facility obtained from Equitorial Trust Bank Ltd (later Sterling Bank Plc), faced the consequences of its inability to meet repayment obligations. A Mortgage Debenture in favor of the lender empowered the appointment of a Receiver, Abdul Malik Ora Ebunike (the 1st Defendant), who assumed control of the Plaintiff’s assets and subsequently facilitated their sale to Niger Delta Flour Mills Ltd (the 3rd Defendant). The Plaintiff, alleging fraud through an undervalued sale, challenged the transaction in court, seeking to have the sale set aside. The Federal High Court in Enugu, presided over by Hon. Justice I. N. Buba, delivered its judgment on November 25, 2020, ruling in favor of the Defendants. This article delves into the intricate details of the case, shedding light on its implications for company law and receivership practices.
For a comprehensive understanding of the judgment, click the link below to access the full decision.
https://drive.google.com/file/d/1jLsjJIMeTqY7sg6vwFeuWyn961AB1NXZ/view?usp=drive_link