The long-running liquidation battle between Dantata & Sawoe Construction Company Limited and Zutari Consulting Nigeria Limited came to a close on Thursday as the Federal High Court in Abuja struck out the winding-up suit after confirming that the construction giant had finally paid the $1.4 million owed to the consulting firm.
Justice Mohammed Umar issued the order after verifying that the payment fully satisfied the settlement agreement covering the $1,257,592.83 subcontract debt arising from work executed on the Dangote Fertilizer Plant project in Lekki, Lagos.
The judge also vacated earlier directives appointing liquidators for Dantata & Sawoe, following a review of affidavits and oral submissions by both parties.
The decision capped months of intense legal pressure on the company.
The court had earlier approved the publication of a winding-up petition in two national dailies after repeated delays by Dantata & Sawoe in offsetting the debt.
Zutari Consulting had secured the appointment of a liquidator when the construction firm failed to meet deadlines earlier provided by the court.
When the matter was called, E. Joshua appeared for Zutari Consulting, while Mr I.I. Okim represented Dantata & Sawoe. The two lawyers confirmed that their clients had reached a final settlement and that the entire debt had been cleared.
Okim asked the court to discharge the liquidation orders in light of the company’s compliance, prompting Joshua to make an oral request to withdraw the petition.
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Justice Umar granted the request, striking out the case and formally ending the liquidation bid.
Ahead of the ruling, Dantata & Sawoe had filed a motion on Dec. 4 stating that it had paid the arbitral award debt in full.
In an affidavit supporting the application, the company’s Head of Litigation and Insurance, John Dalam, detailed several credit transfers made to Zutari Consulting and attached debit alerts to substantiate the claim.
Dalam warned that continued execution of the liquidation orders would inflict irreparable harm on the company.
He also noted that an appeal had been lodged against the earlier orders and that enforcing them could create a fait accompli—an irreversible situation—for the appellate court.
The company further undertook to provide security for costs to strengthen its plea.
The settlement amount, totaling $1.4 million, reflects the terms reached by both parties to resolve the initial $1,257,592.83 subcontract debt stemming from the Lekki fertilizer plant project.
NAN
