In a significant legal development, Muhab Engineering Nigeria Limited is executing the ruling of the Bauchi High Court, led by Justice Mu’azu Abubakar, by seizing assets belonging to the Bauchi State Urban Planning and Development Board (BSUPDB) in an effort to recover a debt amounting to N62,545,051.19.
The debt, comprised of principal and interest, stems from a 2011 legal action initiated by Muhab Engineering against BSUPDB.
The dispute arose due to the board’s failure to pay the engineering company 50% retention money for a contract awarded in 2009 for the Doya Outfall Drainage Channel in Bauchi Metropolis.
Muhab Engineering has taken possession of 13 vehicles and other properties owned by BSUPDB, housed at the Bauchi State High Court premises. The company plans to auction these seized assets to recoup its outstanding debt.
Speaking on behalf of Muhab Engineering’s Managing Director, Alhaji Labbo A. Kabiru, the representative emphasized their compliance with the court’s judgment.
Kabiru clarified that despite successful completion of the project and commendation from the project coordinator, BSUPDB defaulted on the payment within the stipulated time frame, leading to the legal action.
Kabiru detailed the efforts made for resolution, including a meeting with BSUPDB in January 2020 where they agreed to waive 50% of the claims. However, delays persisted, and the government only acted a year later, prompting legal action.
Highlighting the company’s reluctance to involve the World Bank to prevent disruption of ongoing projects, Kabiru stressed that legal action became their last resort after 12 years of pursuit.
In response to the matter, Barrister UB Babayo, counsel to BSUDPB, indicated that the issue is under review by senior officers at the Ministry of Justice and refrained from further comments at this time.
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