Insurance and reinsurance companies in the country on Thursday asked the Federal High Court, Abuja to restrain the National Insurance Commission (NAICOM) from continuing with its planned recapitalisation process.
The companies, through their lawyer, Ayodele Akintunde SAN, urged Justice Ahmed Mohammed to issue the order following NAICOM’s decision to go ahead with the process despite the pendency of the matter in court.
Justice Mohammed had on August 13 ordered NAICOM to appear before the court following an ex-parte motion dated and filed on July 22, marked: FHC/ABJ/CS/ 835/2020, brought by the plaintiffs.
The News Agency of Nigeria reports that while the Incorporated Trustees of Standard Shareholders Association of Nigeria and Godwin Augustine Anono are 1st and 2nd plaintiffs respectively, NAICOM is the sole defendant in the suit.
NAICOM had in circulars, numbered: NAICOM/DPR/CIR/25/19 of May 20, 2019; NAICOM/DPR/CIR/25-02/2019 of July 23, 2019; and NAICOM/DPR/CIR/25-03/2019 of December 30, 2019, directed all insurance and reinsurance companies in Nigeria to increase their minimum paid-up share capital not later than September 30, 2021.
At Thursday’s sitting, Akintunde reminded that the court gave an order asking NAICOM to appear before it to show cause why his clients’ request should not be granted.
He said the enroll order, hearing notice and other processes were served on the defendant on August 17 as directed by the court.
“I was served by the respondent this morning with a memorandum of appearance, preliminary objection, as well as affidavit to show cause,” he said.
Counsel to NAICOM, Chukwuma-Machukwu Ume (SAN), who told the court that he filed those processes to show why the plaintiffs’ prayer should not be granted, said: “We manage to do this within the three-day time frame given to us.
“We were served on August 17.
“In addition, this morning, we were served with another process: affidavit of facts, marked Exhibit GA6.
“It is an eight-paragraph affidavit.”
In view of this, Ume, therefore, urged the court to either adjourn to hear the substantive matter or give his client more time to respond to the applicants’ processes.
Responding, Akintunde said though he had no objection to NAICOM’s plea asking the court to hear the substantive suit, he however expressed fear on the request for adjournment.
“As I earlier said, I have had a cursory look at their processes and all the issues raised essentially hold on the jurisdiction of your lordship,” he said.
He told the court that after being served with the court order on August 17, NAICOM immediately issued a circular dated August 17, same date it was served, titled: “Re: Minimum Paid-Up Share Capital Policy for Insurance and Reinsurance Companies in Nigeria,” asking the companies to comply with its directive.
Comments are closed.