The Lagos Division of the Court of Appeal has struck out an appeal filed by Ecobank Nigeria Plc against Kam Industries Nigeria Limited over the issuance of a hearing notice in a $9.5 million foreign exchange dispute.

In a unanimous decision, the three-member panel – Justices Folashade Ojo (presiding), Paul Ahmed Bassi, and Ngozika Okaisabor – upheld a preliminary objection raised by Kam Industries, ruling that the appeal, filed on April 29, 2025, was incompetent. The court also awarded N1 million in costs to the respondents.

The dispute arose from a ruling by Justice Daniel Osiagor of the Federal High Court in Lagos, which modified a Mareva injunction in the case between Ecobank and Kam Industries over an alleged $9.5 million credit transaction.

Justice Osiagor had granted Kam Industries a one-time release of N500 million to pay outstanding salaries to over 4,000 employees nationwide.

Earlier, the court had issued a Mareva injunction freezing assets across 25 banks and financial institutions linked to the defendants, pending the outcome of the main suit (FHC/L/CS/1748/2024).

Other defendants in the case include Dr. Kamoru Yusuf and Kamsteel Integrated Company.

However, Ecobank, represented by Kemi Balogun, SAN, challenged the issuance of a hearing notice dated April 14, 2025, arguing that it was issued without a formal application from either party.

The notice scheduled the case for hearing on April 30, 2025, even though a ruling on the Mareva injunction was already scheduled for June 4, 2025.

Ecobank contended that by setting an earlier date, the Federal High Court had unilaterally abridged the ruling date and acted outside its jurisdiction. The bank subsequently filed a notice of appeal and a motion to stay further proceedings.

In response, Kam Industries, through its counsel Yusuf Ali, SAN, argued that there was no valid decision of the trial court upon which an appeal could be based. He described the appeal as a gross abuse of court process, academic, and hypothetical, having been filed without the leave of court—required where the appeal involves mixed issues of law and fact.

Delivering the lead judgment, Justice Ojo held that an appeal must be founded on a valid decision of the lower court.

She stated: “A hearing notice is merely an administrative act by the court registry to notify parties of hearing dates. It is not a decision or order capable of being appealed against.”

Justice Ojo also noted that the grounds of appeal raised factual issues for which Ecobank failed to seek the court’s leave.

The appellate court concluded that the appeal amounted to an abuse of court process and was academic, as a hearing notice neither conferred nor extinguished any legal rights.

“An appeal is academic where it raises abstract questions and does not affect the legal rights of the parties,” Justice Ojo ruled.

“The issuance of a hearing notice does not in itself create or extinguish any rights or liabilities. Determining this appeal would serve no utilitarian or practical value, and I so hold.The foundation of this appeal is faulty. It is not based on any valid decision of the lower court. It is completely academic and I so hold.”

Having resolved all five issues in favour of Kam Industries, the court upheld the preliminary objection.

“In consequence of the success of the preliminary objection, I hold that the appeal filed on April 29, 2025, is incompetent and it is accordingly struck out with costs assessed at N1million in favour of the respondents/objectors against the appellant.” 9This Day)