CORAM

TASLIM O. ELIAS, JUSTICE SUPREME COURT

PARTIES

ECOBANK NIGERIA PLC PETITIONER(S)

RESPONDENTS

AREA(S) OF LAW

SUMMARY OF FACTS

The Petitioner filed a petition for winding up of the Respondent’s Company being an insurance company on the grounds that the company is insolvent and is unable to pay its debt. The Respondent thereafter filed a notice of preliminary objection on the ground that the petition is incompetent as no statutory provision is made for the Petitioner to wind up the Respondent’s company and that there do not have of locus standi to present the petition. This ruling is based on the objection.

HELD

Objection upheld

ISSUES

Whether a creditor can bring an application to wind up Insurance Company?

RATIONES DECIDENDI

WINDING UP OF INSURANCE COMPANY – WHAT A PETITIONER MUST ESTABLISH IN PRESENTING A PETITION FOR WINDING UP OF INSURANCE COMPANY

“It is not enough in the instant case for the petitioner to show to this court that the Respondent is insolvent and unable to pay its debt, it must also show that it has complied with section 32(1) of the Insurance Act i.e. that the petition is presented by not less than 50 policy Holders, each of whom holds a policy that has been in force for not less than 3 years”. PER MUSTAPHA J

CASES CITED

NONE

STATUTES REFERRED TO

Insurance Act 1997Companies and Allied Matters Act 1990?

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