A significant ruling from a United Kingdom court has ordered Process & Industrial Developments (P&ID) Limited to pay Nigeria £20 million as damages and compensation within the next 28 days.
This follows Nigeria’s recent triumph in an $11 billion judgment debt case, with the court’s consequential ruling shedding light on the next steps after the October judgment.
The UK court, during the hearing, denied P&ID permission to take the matter back to arbitration. The court strongly condemned P&ID’s conduct during the process, deeming it reprehensible. Consequently, the previously awarded $11 billion judgment was entirely set aside.
Arise News Channel reported that Nigeria sought a minimum of £20 million from P&ID to cover damages and legal fees. Despite P&ID’s efforts to limit the payment amount or potentially make payments in naira, the court ruled in favor of Nigeria, mandating the payment of £20 million within 28 days. Furthermore, P&ID’s request to appeal on the currency for payment was also denied.
The UK court’s decision emerged from a complex legal battle that had lasted five years. In the judgment delivered by Justice Robin Knowles of the Commercial Courts of England and Wales, the court upheld Nigeria’s argument that the gas processing contract was fraudulently obtained.
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Justice Knowles highlighted that the awards secured by P&ID were obtained fraudulently, contravening public policy. The judgment under Section 68 underscored the seriousness of the irregularities in the tribunal proceedings, indicating the court’s responsibility to ensure the rule of law.
Recalling the background, P&ID had entered an agreement with Nigeria in 2010 to construct a gas processing plant in Calabar, Cross River State. Alleging breach of contract by the Nigerian government, P&ID pursued legal action, resulting in an arbitral award against Nigeria.
The recent UK court’s ruling signifies a significant victory for Nigeria, providing relief from the enormous judgment debt previously awarded to P&ID, while setting a clear direction for the resolution of this protracted legal dispute.
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