The Federal High Court in Lagos has made an order stopping Shoprite Checkers (PTY) Limited from disposing of or transferring its assets out of jurisdiction or to a third party over a $10 million judgment sum.
Shoprite two weeks ago announced its intention to exit Nigeria,
However Justice Mohammed Liman issued an order in favour of a Nigerian company, A.I.C. Limited, which in 2018, secured a $10m judgment against Shoprite in a breach of contract suit.
Dissatisfied with the judgment of the court, Shoprite went on appeal.
Thereafter Shoprite filed another appeal at the Supreme Court. The appeal is pending.
On July 14, 2020, Justice Liman restrained Shoprite and its privies “from transferring, assigning, charging, disposing of its trademark, franchise and intellectual property in a manner that will alter, dissipate or remove these non-cash assets and other assets, including but not limited to trade receivables, trade payables, payment for purchase of merchandise, from within the jurisdiction of the court.”
The judge also mandated the second respondent, Retail Supermarket Nigeria Limited, “to disclose its audited financial statements for the years ending 2018 and 2019 to enable the judgment creditor/applicant determine the judgment debtor’s/respondent’s funds in its custody in order to preserve same in satisfaction of the judgment of the Court of Appeal.
A.I.C. Limited had in 2012 sued Shoprite Checkers (PTY) Limited; and Retail Supermarket Nigeria Limited for alleged breach of contract.
The Nigerian company averred that it invited the South African retail supermarket operators to Nigeria and opened their eyes to business opportunities in the country, with a view that they would go into a joint venture.
The Nigerian company alleged further that after talks had reached an advanced stage and it had incorporated A.I.C.-Shoprite Nigeria Ltd. in the hope of a joint venture, Shoprite abandoned the agreement and went behind its back to set up its outfit in 2005
Though Shoprite contended that it had no contract with the Nigerian firm, both the high court and the Court of Appeal said the series of correspondents between the parties confirmed that A.I.C Limited and Shoprite agreed to a joint venture.
Upholding the high court judgment, the Court of Appeal declared that, “There is evidence in the record that the 1st appellant allowed the respondent to search for a suitable site for the partnership project and to apply for a lease of land for the partnership project.