IOT Engineering Projects Ltd v Dangote Fertilizer Ltd & Anor

The offer and acceptance of a parent company guarantee from Dangote Industries Limited, a financially robust entity, eliminates any legitimate concern regarding dissipation or frustration of enforcement. Routine difficulties in enforcement in Nigeria do not justify freezing order relief. The evidence provided by IOTEP falls far short of justifying the continuation of the freezing order.

Parties: Appellant: IOT Engineering Projects Limited; Respondent: Dangote Fertilizer Limited; Respondent: IDBI Bank Limited
Jurisdiction: England and Wales
Judgment Date: 16 October 2014
Procedural Posture: Appeal / Judgment
Outcome: appeal dismissed
Legal Topics: Freezing Order, Risk of Dissipation, Enforcement of Arbitral Awards, Parent Company Guarantee

Commercial Law Arbitration Freezing Order Risk of Dissipation Enforcement of Arbitral Awards Parent Company Guarantee

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Full judgment text Downloadable case file Legal principles 3 Authorities cited 6 Party arguments 2 Amounts and remedies 13

Parties

IOT Engineering Projects Limited

Appellant

Dangote Fertilizer Limited

Respondent

IDBI Bank Limited

Respondent

Procedural Posture

Appeal / Judgment

Legal Issues

1 Whether the risk of dissipation or difficulty of enforcement in Nigeria justifies the continuation of a freezing order
2 Whether the offer of a parent company guarantee eliminates legitimate concerns about dissipation

Ratio Decidendi

Court Disposition

appeal dismissed

Orders

Freezing order not continued beyond interim basis
Funds to be released to Dangote Fertilizer Limited subject to parent company guarantee from Dangote Industries Limited