High Court Judge slams 14 Days Ultimatum…

Leonoil to pay 6 Billion in 7 Days

By Mimie Habib
The High Court of Sierra Leone has granted a stay of execution of its February 7, 2024 judgment in a case between Jaffar Zeghir (Plaintiff) and Leonoil Company Limited (Defendant). The judgment favored the Plaintiff, who had purchased Two Hundred Thousand Litres of assorted petroleum products from the Defendants for One Billion, Two Hundred and Ninety-Six Million, Four Hundred Thousand old Leones (Le1,296,400,000) between January 27 and February 2, 2021.

An application for the stay was filed on February 15, 2024, by Counsel representing Leonoil Company Limited, accompanied by an affidavit from Ibrahim Babatunde Cole, the Managing Director of the company. Justice Samuel O. Taylor ruled on the terms, requiring Leonoil to deposit Le6,000,000,000 (six billion old Leones) into an interest-bearing account within 14 days. This payment would ensure that if the appeal fails, the Plaintiff would receive the sum plus interest.

Additionally, Justice Taylor ordered Leonoil to enter a bond guaranteeing payment to the Plaintiff within 14 days of the Court of Appeals’ judgment. The lower court costs were to be taxed as such, and if Counsels disagreed on the amount owed to the Plaintiff’s solicitors, the Plaintiff’s solicitors would refund the amount if the appeal succeeded. The application cost of Le50,000,000 (fifty million old Leones) was to be borne by Leonoil.

Counsel for Leonoil, Editayo Pabs-Garnon Esq, argued that his client was willing to provide the fuel but raised concerns about taxes due to the government, contending that these taxes were to be paid when the fuel was collected by retailers, not when ordered. He stated that Leonoil acted as agents for tax collection and should not be liable for the taxes. The lack of clarity from the National Revenue Authority (NRA) contributed to the confusion and legal proceedings.

In response, Counsel for the Plaintiff, Jacob Jibao Campbell Esq, presented 14 exhibits opposing the application, arguing that Leonoil had not shown exceptional circumstances warranting a stay. Campbell highlighted the dispute’s origin in the Petroleum Regulatory Agency’s fuel price increase, emphasizing the Plaintiff’s financial hardship due to the delayed fuel supply, which led to the shutdown of one of his stations.

As the compliance deadline approached, whether Leonoil would pay as directed remained uncertain. Failure to comply risked contempt of court. The ongoing legal battle underscored the complexities of business transactions and the need for legal clarity, with the court tasked with weighing both parties’ interests.