Nestle Nigeria Plc has been sued before the Oyo State High Court, Ibadan, by First Nigeria Enterprises, for breaching the trade Agreement they had executed.
Access Bank Nigeria Plc is a co-defendant in the suit no I/222/2017, which funded the Distributorship Agreement between Nestle and First Nigeria Enterprises.
The case came up for further hearing on Thursday, with Ogunbode’s counsel, Kolade Olawuni of Babalakin and Co., compelling the Court to restrain the first and second Defendants from taking any action against First Nigeria Enterprises, pending when the dispute in respect of the company’s account action would be referred to Arbitration.
Olawuni said, “Essentially, what we are asking for is for the Court to restrain the two parties, that is, Nestle and Access Bank, from taking any further action in respect of the trade account that Ogunbode has in the name of First Nigeria Enterprises”. The company has a distributorship agreement with Nestle, which was financed by Access Bank.
“But a dispute has arisen concerning an alleged trade gap. The trade gap is disputed and Ogunbode made an allegation of unfair and unjust treatment and manipulation in his account. We are now before the court to restrain them from taking any action against him pending when the dispute in respect of the account is referred to arbitration”.
“The agreement they have at the inception of the distributorship is that any dispute will be referred to Arbitration. They have not done that and they have unilaterally decided to take steps that are inimical to his business, which is against the spirit of the Agreement. This is just a simple case of maltreatment of a partner involved in a trade agreement”.
“On February 23, 2017, the court was gracious enough to grant us order of injunction, restraining the two parties from taking any step in the course of the business and towards a provocative letter addressed to Ogunbode on January 19, 2017, saying that they wanted to forestall his business and seize all his instruments of trade.”
The presiding Judge Moshood Abass J., adjourned the case to April 10, 2017.