By Henry Ojelu

A Federal High Court sitting in Lagos on Thursday granted an order staying the execution of its judgment in a suit filed by Cenroc FPSO Solutions Nigeria Ltd against AMNI International Petroleum Development Company Ltd.

Justice Chukwujekwu Aneke granted the order while delivering a ruling on a motion seeking a stay of execution of the court’s judgment delivered on February 13, in the suit marked FHC/L/L/CS/1454/2025.

The plaintiff’s action against the defendant arose from an underlying commercial relationship and contractual engagements with AMNI.

Cenroc had approached the court through an administration application filed on July 23, 2025, seeking, among other reliefs, a declaration that AMNI had become unable to pay its outstanding debt to the company.

The firm also asked the court for an order appointing Mr. Sam Aiboni as administrator over the affairs of the defendant company.

On February 13, Justice Aneke granted the reliefs sought by the plaintiff and consequently appointed Aiboni as administrator of the company.

However, dissatisfied with the judgment and the order appointing the administrator, the respondent filed an appeal challenging both the judgment and the appointment.

The respondent also sought a stay of execution of the judgment pending the determination of the appeal.

Delivering his ruling on the application on Thursday, Justice Aneke held that the judgment debtor had made out a case warranting the grant of a stay of execution.

“Therefore, having carefully considered the materials placed before this honourable court, especially Exhibit AO1 attached to the affidavit in support of the application, it is my view that the defendant/applicant has made out a case for the grant of the said application for stay of execution of the judgment of this court delivered on February 13, 2026, and I so hold,” he said.

Meanwhile, the judge drew a distinction between an administrator and a receiver under the provisions of the Company and Allied Matters Act (CAMA) 2020, indicating that in the instant suit, the court’s order was for an administrator and not a receiver.

Justice Aneke said: “However, before putting my pen down in respect of this suit, I must correct the impression created by the first appointed administrator in processes, as if receivership is synonymous with administration.

“In a receivership, a receiver acts as an agent and is accountable only to the appointing creditor, who also bears liability for his default. The receiver realises assets and applies the proceeds to the secured debt and remits any surplus to the company.

“Over time, it became clear that the concept of a receiver was deficient, as it lacked stakeholder balance and provided no moratorium against other creditors, leading to parallel enforcement actions and asset dislocation.

“Realising these economic inefficiencies, CAMA 2020 introduced novel corporate rescue mechanisms modelled after the English administration regime. Under Part 18 of CAMA 2020, administration proceedings became a structured statutory mechanism aimed at reviving distressed but viable companies.

“See Section 444 of CAMA 2020, which outlines the key objectives of administration proceedings,” he said.

Consequently, the court held: “The judgment debtor’s application for stay of execution pending appeal, dated and filed on February 13, is hereby granted.”

Source; Vanguard News