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Courts to resolve Airtel, Procomtel deadlock

08 April 2014, 14:58

Lagos - A Lagos High Court has deferred the suit by a telecoms firms, Procomtel, has instituted against Airtel Nigeria, the mobile network operator.

The court's decision follows an appeal file by Airtel challenging a garnishee ordering the telecoms firm to pay Procomtel  N.17 billion for alleged breach of contract.

Procomtel had alleged that it had an agreement with Airtel for the construction of 28 cell sites in 2001, but the telecom company allegedly terminated the contract two years later.

Procomtel said it successfully executed the contract, and provided other services to Airtel, including importing of equipment, and Airtel was therefore indebted to it.

It said that failure of Airtel to pay the N1.17 billion agreed for the project had adversely affected and almost paralysed its business.

An arbitration court initially upheld the argument of Procomtel and asked Airtel to pay the contract debt.

In a further step to force Airtel pay the money, Procomtel proceeded to a Lagos High Court with a garnishee order to compel banks with Airtel accounts to pay the money directly to its account.

Airtel has however filed a formal appeal before the Court of Appeal against the court ruling.

Airtel is urging the appellate court to stay execution of a Garnishee Order Nisi made against it by the lower court and to set it aside.

Presiding Judge, Justice Lawal Akapo said he would suspend further hearing of any applications by parties in the matter until the Court of Appeal determined Airtel’s appeal.

– CAJ News

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