Fresh controversy has emerged following the Supreme Court’s ruling against Nestoil Limited and Neconde Energy Limited, with an insider alleging that the oil firms are now demanding a refund of legal fees reportedly paid in anticipation of a favourable judgment at the apex court.
According to the source, the companies and their owners had allegedly paid as much as $40 million to a team of senior lawyers to prosecute their case before the Supreme Court in a long-running dispute involving an estimated $2 billion debt owed to a consortium of banks. The insider claimed the payment was made with the expectation that the legal battle would end in their favour.
The expectation, however, was dashed when the Supreme Court ruled against the companies, ordering that the matter be returned to the Court of Appeal to determine issues relating to legal representation, while affirming that the debt owed must be settled.
Following the loss, the insider alleged that Nestoil and Neconde have begun pressing for a refund of the legal fees, arguing that the outcome fell short of the assurances allegedly given to them before the case reached the apex court.
The source further alleged that similar strategies had been employed during earlier proceedings at the Federal High Court, where interim orders affecting the companies’ assets were set aside. These claims, however, remain allegations and have not been established by any court.
Nestoil and Neconde have been locked in protracted litigation with a consortium of banks over outstanding loan obligations running into billions of dollars. The dispute has passed through multiple levels of the judiciary, drawing significant attention because of the size of the debt and the prominence of the parties involved.
Legal observers note that the Supreme Court’s decision reinforces a long-standing principle of commercial law: that corporate debt obligations cannot be wished away through procedural manoeuvres once liability has been established.
As of the time of filing this report, none of the lawyers named in the allegations, nor representatives of Nestoil or Neconde, have publicly responded to the claims.
Culled from Pointblanknews
After Supreme Court Loss, Nestoil, Neconde Seek Refund of Legal Fees — Insider Claims
