BUSINESS: Court dismisses FHT Mega Express’ N7.1bn suit against Parallex Bank, awards N500,000 costs

The Federal Capital Territory High Court has dismissed in its entirety a N7.1bn suit filed by FHT Mega Express Limited against Parallex Bank Limited, describing the action as a gross abuse of court process.

The court also awarded costs of N500,000 against the logistics company in favour of the bank.

In its ruling delivered on April 20, 2026, the court upheld the preliminary objection raised by Parallex Bank, which had challenged the competence of the suit and urged the court to strike it out.

Ex Parte Order to Freeze Bank Funds

FHT Mega Express had earlier secured an ex parte order freezing Parallex Bank’s funds up to the sum of N7.1bn with the Central Bank of Nigeria.

However, Parallex Bank promptly filed a Notice of Preliminary Objection, arguing that the Abuja suit constituted an abuse of court process, particularly in view of a subsisting action it had already instituted against FHT Mega Express before the High Court of Lagos State to recover the company’s outstanding indebtedness.

The bank maintained that the parallel action in Abuja was improper and strategically designed to frustrate the earlier proceedings.

Background to the Dispute

The dispute dates back to September 4, 2025, when Parallex Bank filed Suit No. FHC/L/CS/1774/2025 before the Federal High Court in Lagos, seeking to recover N4.5 billion allegedly owed by FHT Mega Express.

The debt reportedly arose from Letters of Credit issued to finance import transactions worth millions of euros for the logistics firm.

In the earlier proceedings, Justice Lewis Allagoa had ordered parties to maintain the status quo pending the determination of the substantive matter.

According to court documents, after withdrawing a similar case at the Lagos State High Court, FHT Mega Express instituted the Abuja action two days later, raising substantially identical claims and seeking fresh ex parte reliefs — a move Parallex Bank described as forum shopping.

Parallex Bank argued that FHT Mega Express deliberately failed to disclose key facts to the Abuja court, including: The existence of the earlier Federal High Court suit filed in Lagos;The subsisting order directing parties to maintain the status quo; Its unsuccessful attempt to secure similar ex parte orders in Lagos.

The bank contended that this suppression of material facts misled the court into granting interim reliefs that ought not to have been issued.

Court’s Findings

In its ruling, the FCT High Court agreed with the bank’s submissions, holding that FHT Mega Express’ conduct demonstrated bad faith and amounted to a clear abuse of judicial process.

The court stressed that litigants must not duplicate disputes across multiple jurisdictions in a bid to gain strategic advantage. Consequently, the suit was dismissed in its entirety, and costs of N500,000 were awarded against FHT Mega Express in favour of Parallex Bank.

Sources close to Parallex Bank described the ruling as a victory for due process, transparency, and the rule of law.

They stated that the outcome reinforces the bank’s commitment to sound corporate governance and lawful conduct in its dealings, while safeguarding stakeholder trust and the integrity of its operations.

Legal observers note that the judgment underscores the judiciary’s growing intolerance for multiplicity of suits and forum shopping in commercial disputes.

The decision is expected to serve as a reference point in future banking litigation, reaffirming the courts’ stance against procedural abuse and reinforcing the principle that disputes must be resolved within proper legal frameworks.

With the dismissal of the Abuja suit, Parallex Bank is now positioned to continue its recovery efforts in the pending Lagos proceedings, as it seeks to protect its financial and reputational interests through lawful means.