Some aircrafts belonging to Arik Airline have been grounded today by the Nigerian Airspace Management Agency (NAMA) following a judgment by a Abuja High Court mandating the sale of aircraft, hangars, and other movable assets owned by Arik Air Limited over a $2.5 million debt. The court directed the sale of the aircraft with the registration numbers B737-700/5N-MJF, B737-800/5N-MJQ, DASH8-Q400, and 5N-BKX.In a statement on Tuesday, Abdullahi Musa, director of public affairs and consumer protection at NAMA, said the order is regarding a case of $2.5 million owed by Arik to Atlas Petroleum International Ltd.
“On the 19th day of July 2024, the enforcement department of the FCT High Court enforced an Order made by the Court regarding a debt of $2.5 million owed by Arik Airline to one Atlas Petroleum International Ltd by attaching their aircraft,” the agency said.
“Arik was further given a notice of Public Auction of the planes by the Court which was slated to be held on the 26th day of July 2024 if they fail to pay the Judgment debt. All these were served on our agency and also on our supervising minister, the minister of aviation.
“The records show that on the 8th day of March, 2016, the Judgment Debtor (ARIK) appealed the decision of the High Court of Lagos State entering judgment against it to the Court of Appeal and on 30th September 2021, the appeal was dismissed by the Court of Appeal in a unanimous decision with cost.
“Arik again appealed to the Supreme Court for leave to appeal the decision of the Court of Appeal, and on the 9th day of January 2024, the Supreme Court, per Okoro, J.S.C., delivered its Ruling dismissing the Judgment Debtor’s application for leave to appeal.
NAMA further said Arik obtained an ex parte order stopping further execution of the order – even though the agency has not been formally served.
“In the circumstances, since the first execution took place by attaching the aircraft, further execution by way of sale can be halted whilst the parties go back to court to resolve the issues,” NAMA said. However, in order to preserve the subject matter of the present dispute which are the aircrafts in question (the res), which have already been attached, we have decided to comply with the effect of the supreme court order, by grounding the aircrafts (subject of dispute) so that they are not taken out of the jurisdiction of the court or tampered with in a way as to frustrate the courts.”
The agency also said the minister, being a member of the inner bar understands the implication of the supreme court order dismissing the motion for leave to appeal.
“The minister will not risk his license as a legal practitioner or his privilege as a senior Advocate of Nigeria by engaging in acts that will frustrate an order of the Supreme Court of Nigeria,” NAMA added. NAMA also said the parties to the dispute should resolve their issues as quickly as possible so Arik aircraft can resume flight operations.
Earlier, Roy Ilegbodu, chief executive officer (CEO) of Arik Air (in receivership), said the minister’s directive came without warning or consultation. He said the decision would have a ripple effect on the firm and the country’s economy.