Court dismisses N7.1b suit against bank, awards costs
Federal Capital Territory High Court has dismissed a N7.1 billion suit by FHT Mega Express Limited against Parallex Bank Limited, ruling that the case constituted an abuse of court process.
Federal Capital Territory High Court has dismissed a N7.1 billion suit by FHT Mega Express Limited against Parallex Bank Limited, ruling that the case constituted an abuse of court process.
The court upheld a preliminary objection raised by the bank and struck out the suit. It awarded N500,000 against FHT in favour of the bank.
The logistics company had obtained an ex parte order to freeze the bank’s funds up to N7.1 billion with Central Bank.
Parallex Bank filed a Notice of Preliminary Objection, urging the court to strike out and/or dismiss the suit on the grounds that it constitutes abuse of court process, particularly in light of the subsisting suit, which the bank earlier instituted against the company before the High Court of Lagos State to recover an alleged outstanding indebtedness to Parallex Bank.
The FCT court upheld arguments canvassed by the bank, and dismissed the suit.
The dispute dates back to September 4, 2025, when the bank filed Suit FHC/L/CS/1774/2025 at Federal High Court, Lagos, to recover a debt of N4.5 billion from FHT.
The debt reportedly arose from Letters of Credit issued to finance import transactions worth millions of Euros.
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Justice Lewis Allagoa of the Federal High Court earlier ordered parties to maintain the status quo pending determination of the substantive matter.
Parallex Bank welcomed the ruling, describing it as “a triumph for due process, transparency, and the rule of law.”
The bank said the outcome reinforces commitment to sound corporate governance and lawful conduct while upholding stakeholder trust and ensuring integrity in its operations.
Analysts said the ruling reaffirms due process and transparency, noting it strengthens confidence in the judicial system.
The decision will clear way for Parallex to recover funds tied up in the dispute and affirm its right to pursue lawful remedies in protecting its financial and reputational interests.
