The Bauchi State High Court has made a decision stating that Muhab Engineering Nigeria Limited, a contractor working with the state, has the authority to take control of certain properties belonging to the State Urban Planning and Development Board (BSUDPB).
This action is aimed at recovering a debt of N62,545,051.19 owed by the Board.
Justice Mu’azu Abubakar, presiding over the Bauchi State High Court, has ruled in favor of the company, allowing it to seize assets from the Board due to the outstanding debt.
Consequently, Muhab Engineering, while implementing the court’s decision, took possession of 13 vehicles and properties belonging to the Board.
These seized assets were then relocated to the High Court premises for auctioning, enabling the company to recoup its owed funds.
A representative of Muhab Engineering, Alhaji Labbo Kabiru, explained that the company had taken legal action against BSUDPB because of their failure to pay the 50 percent retention money for a contract awarded to Muhab Engineering in connection with the Doya Outfall Drainage Channel project in Bauchi Metropolis since May 18, 2009.
Kabiru highlighted that the project was successfully completed, receiving commendation in a letter from the project coordinator dated August 25, 2011.
However, the Board defaulted in paying the 50 percent retention money within the stipulated 28 days, as specified in the contract agreement’s Article 43.1.
As a result, Muhab Engineering demanded payment with a prevailing interest rate of 28 percent for commercial borrowing, and the right to request payment in any currency.
He further mentioned that the Ministry of Justice had communicated the issue to the Secretary to the State Government through letters dated August 11, 2021, and November 22, 2021.
Despite 12 years of pursuit for resolution, the defendants did not fulfill their promises, leading the company to resort to legal action, resulting in a judgment in their favor.
Kabiru emphasized that during the period when the company was due for payment, the exchange rate was $1 to N350, making the Naira payment significantly less valuable.
