The Federal Capital Territory High Court has dismissed a ₦7.1 billion lawsuit brought by FHT Mega Express Limited against Parallex Bank Limited, ruling that the case constituted an abuse of court process. The decision was delivered on April 20, 2026, following a preliminary objection raised by the bank.
Court Ruling and Costs
The court struck out the suit in its entirety and awarded costs of ₦500,000 against FHT Mega Express in favour of Parallex Bank. The judge held that the claimant's conduct demonstrated bad faith and a clear abuse of judicial process.
Background of the Legal Dispute
The legal battle originated from an earlier action instituted by Parallex Bank at the Federal High Court in Lagos, where the bank is seeking to recover an alleged ₦4.5 billion debt from FHT Mega Express. According to the bank, the indebtedness arose from letters of credit issued to finance import transactions for the logistics company. In that suit, the court had ordered parties to maintain the status quo pending determination of the matter.
Despite this order, FHT Mega Express subsequently initiated proceedings in Abuja and obtained an ex parte order to freeze funds linked to the bank up to ₦7.1 billion with the Central Bank of Nigeria. Parallex Bank challenged the Abuja action, arguing that it amounted to forum shopping and duplication of proceedings already before another court. The bank noted that FHT Mega Express failed to disclose critical facts, including the existence of the Lagos suit, the subsisting court order to maintain status quo, and an earlier unsuccessful attempt to obtain similar reliefs.
Judicial Reinforcement
The FCT High Court agreed with these submissions, emphasising that litigants must not pursue parallel actions across jurisdictions to gain strategic advantage. Legal observers say the ruling reinforces judicial intolerance for procedural abuse in commercial disputes, particularly in the banking sector where debt recovery cases often span multiple courts.
By dismissing the suit, the court effectively nullified the interim orders obtained by FHT Mega Express and cleared the path for the substantive matter to proceed in Lagos. Sources close to Parallex Bank described the ruling as a reaffirmation of due process and transparency, noting that it strengthens confidence in the judicial system. The decision is also expected to clear the way for Parallex Bank to recover funds tied up in the longstanding dispute and affirms its right to pursue all lawful remedies in protecting its financial and reputational interests.
Bank's Recent Milestone
Parallex Bank recently completed the recapitalisation requirement of the Central Bank of Nigeria, surpassing the ₦50 billion minimum capital threshold for regional commercial banks. This milestone reinforced the bank’s position as a financially resilient and strategically forward-looking institution within Nigeria’s evolving banking landscape.
