A firm, Scientific Synergy Consult Limited has failed in its attempt to recover the sum of N501 million from the Enugu State Government, following the declaration by an Enugu State High Court that its arbitral proceeding has become statute barred.
The firm had commenced an arbitral proceeding seeking to enforce an alleged Retainer Agreement between it and the Enugu State Board of Internal Revenue.
The agreement borders on PAYE and Development levies audit of the University of Nigeria Nsukka for the years 2006- 2008; wherein the firm claimed it recovered the sum of N2.5 billion on behalf of the Enugu State Board of Internal Revenue.
Displeased with the arbitral proceedings, the Enugu State Government (through its Attorney General) and the Enugu State Board of Internal Revenue approached the Enugu State High Court for a declaration that there was no valid and enforceable contract between the Enugu State Board of Internal Revenue and Scientific Synergy Consult Limited.
The Suit marked: E/572/2020 has Scientific Synergy Consult Limited and Chief James Akinola, as defendants.
In arguing the case of the plaintiffs, O. A. Okafor, urged the court to hold that there was no contract between Enugu State Board of Internal Revenue and the Scientific Synergy Consult Limited.
He added that even if there was an agreement, the action would have been statute barred by the time the defendant commenced arbitral proceedings.
In a counter to the suit, Scientific Synergy Consult Limited urged the court to declare that there was indeed a valid and enforceable contract between it and the Enugu State Board of Internal Revenue.
It also prayed the court to make an order directing the Enugu State Board of Internal Revenue to pay over to it, the sum of N501,195,664.64k as commission for PAYE and Development levies audit of the University of Nigeria Nsukka for the years 2006- 2008, pursuant to an alleged Retainer Agreement between it and the Enugu State Board of Internal Revenue, in which it claimed to have recovered the sum of N2,505,978,323.22k on behalf of Enugu State Board of Internal Revenue.
In his judgment, Justice K. I. Okpe of the High Court of Enugu State agreed with the submissions of the Plaintiff’s Counsel and held that there was no valid and enforceable contract between the Enugu State Board of Internal Revenue and Scientific Synergy Consults Limited and that in any case, Synergy’s claim and resort to Arbitration was statute barred.
The court further held that Scientific Synergy Consult Limited failed to prove its Counterclaim as its own documents disproved rather than proved its case, consequently the court dismissed the counter claim.
