Frutta Juice Asks Court to Halt Winding-Up Advert Pending Appeal
Frutta Juice & Services Limited has asked the Federal High Court in Lagos to stop publication of a winding-up petition over an alleged $53,026 debt, arguing that the advertisement could severely damage its business while its appeal is pending.
Company Seeks to Stop Publication
Frutta Juice & Services Limited has asked the Federal High Court in Lagos to stop the publication of a winding-up petition brought against it by Saudi Modern Packaging Factory Company Limited over an alleged $53,026 debt.
The application follows a July 24 ruling by Justice Musa Kakaki granting the petitioner permission to advertise the winding-up petition in the Federal Government Official Gazette and newspapers.
Frutta Juice is asking the court to stay that ruling, as well as further proceedings in the case, pending the determination of its appeal.
Why Frutta Juice Is Appealing
Through its lawyers, Lexworth Legal Partners, the company argues that publication of the petition while its appeal is pending could cause serious and potentially irreversible damage to its business.
It contends that the Federal High Court did not properly consider whether the winding-up proceedings amounted to an abuse of court process against a solvent and operating company.
The company also argues that the July ruling improperly treated the alleged debt as undisputed and raised substantive issues at an interlocutory stage, which it says affected its right to a fair hearing.
According to an affidavit filed in support of the application, Frutta Juice has significant investments, a nationwide production and distribution network and about 177 direct and indirect employees.
The Commercial Stakes
Frutta Juice says publishing the petition could affect its relationships with financial institutions, suppliers and other creditors, potentially damaging its commercial standing before its appeal is determined.
The company is therefore asking the court to preserve the existing position until the Court of Appeal decides whether Justice Kakaki was right to allow the winding-up petition to be advertised.
The Court of Appeal will ultimately determine the appeal, while the Federal High Court has not yet ruled on Frutta Juice's latest application.
The case highlights a significant issue in corporate litigation: even before a winding-up petition is finally determined, its public advertisement can carry serious commercial consequences for the company involved.
Was this story helpful?
Responses (0)
No comments yet. Be the first to share your thoughts.