(Apples Bite Magazine) ABUJA — Construction giant Dantata & Sawoe Construction Company Limited has escaped liquidation after settling a $1.4 million debt owed to Zutari Consulting Nigeria Ltd, prompting the Federal High Court in Abuja to strike out the winding-up petition against the company.
Justice Mohammed Umar dismissed the liquidation suit on Wednesday after confirming that Dantata & Sawoe had paid the full settlement amount covering the $1,257,592.83 debt for subcontract work on the Dangote Fertiliser Plant project in Lekki, Lagos.
In his ruling, Justice Umar vacated and discharged earlier orders that had appointed liquidators for the construction firm. The decision followed a review of affidavits presented to the court and submissions from counsel representing both parties.
Facing the threat of liquidation, Dantata & Sawoe had moved swiftly to clear the outstanding debt in full. Through a motion on notice filed by its lawyer, I.I. Okim, on December 4, the company informed the court that it had completely settled its obligation to Zutari Consulting Nigeria Ltd.
The legal battle had intensified months earlier when the court approved the publication of a winding-up petition against Dantata & Sawoe in two national dailies. Justice Umar had previously granted Zutari Consulting’s request for liquidator appointment, noting that the construction company had been given ample opportunity to settle the debt but repeatedly offered excuses.
When the matter came up for hearing, lawyers for both parties confirmed that a settlement had been reached. E. Joshua, representing Zutari Consulting, and Okim for Dantata & Sawoe jointly confirmed that the outstanding debt had been cleared.
Okim urged the court to grant his client’s motion in light of the payment, while Joshua made an oral application to discontinue the liquidation proceedings. Justice Umar granted the application after hearing from both counsel and struck out the case.
According to John Dalam, Head of Litigation and Insurance for Dantata & Sawoe, several credit transfers were made to Zutari Consulting to fulfill the payment obligation. He emphasized that continued execution of the liquidation order would have caused irreparable harm to the company.
The $1.4 million settlement relates to subcontract work performed on the Dangote Fertiliser Plant project in Lekki, Lagos, resolving a dispute that had threatened the existence of one of Nigeria’s major construction companies.
