The Registered Trustees of Auto Dealers in Lagos have secured a legal victory for the Registered Trustees of Auto Dealers in Lagos against the Nigeria Customs Service.

SaharaReporters gathered that on September 30, 2019, some officers of the NCS invaded and sealed several car shops all over the country, claiming the cars were either smuggled or under-assessed during clearance at the ports.

The Registered Trustees of Auto Dealers in Lagos briefed the law firm of human rights lawyer, Monday Ubani to seek legal redress on their behalf over Customs’ alleged harassment, illegality and extortion.

In a letter to the NCS Comptroller General, the car dealers through Ubani & Co. law firm condemned the September 30, 2019 raid and sealing of their shops by customs’ operatives, describing the action as a “demonstration of gross irresponsibility, unprecedented impunity and abuse of power”.

The dealers claimed that all the cars in their business premises were duly cleared and with appropriate duties paid.

The law firm also forwarded copies of the letter to the Senate President, the Speaker of the House of Representatives, the Attorney General of the Federation and the Minister of Justice.

The dealers in a pre-action notice stated, “We must state here with all sense of responsibility and patriotism that the action of Nigeria Custom officers in this regard is a demonstration of gross irresponsibility, unprecedented impunity and abuse of power.

“Though the Nigeria Customs and Excise Management Act gives you the power to examine, mark, seal and take account of any goods contravening your regulations.

“In this case, you did not examine, mark, seal, and take account of the particular vehicles identified as not being properly cleared, but rather sealed up the entire premises without any form of examination or inspection of papers.

“This very act of yours has no protection under the Act, but smacks of impunity, illegality and flagrant abuse of executive power.

“The moment when Nigerian government agencies elevate the pursuit of revenue above the rights and welfare of the citizens, Nigeria is doomed.

“Take notice therefore that you have 14 days from the day you receive this letter to unseal all our client’s members’ business premises to enable them to carry out their lawful businesses as Nigerian citizens.

“Take further notice that you have a period of 30 days from the date you receive this letter to pay a compensation of N10 billion to our clients for the severe hardship, suffering, embarrassment, loss of business, physical, mental and psychological torture and trauma your arbitrary, lawless and inconsiderate action has caused our clients and their families, failing which our client shall be left with no other option than to seek redress through a competent court of law.”

When the warnings and requests were said to be ignored, the law firm instituted an action at the Federal High Court sitting in Lagos with the Nigeria Customs Service Board, Comptroller General of Nigerian Customs as defendants.

Among others, the law firm on behalf of the car dealers in Suit NO: FHC/L/CS/665/2021, asked the Court to determine “Whether the Defendants have any power, authority or justification to invade and seal off the Plaintiff’s members respective business premises, on the ground that the Plaintiff’s members vehicles were smuggled, which allegation they later abandoned for another allegation – that the vehicles were not properly assessed and cleared by the designated Defendants’ officers at the Port, and demanding the Plaintiff’s members to come to the Defendants office with their vehicle Custom clearance documents, which documents were issued to the Plaintiff’s members by officials of the Defendants after duly inspecting, assessing and clearing their vehicles at the port?

They sought among others an order of mandatory injunction directing the Defendants to, with immediate effect, unseal the business premises of all members of the Plaintiff which was “unlawfully and arbitrarily sealed off by officials of the Defendants since September 30, 2019”.

They also sought an order “directing the Defendants to pay to the Plaintiff the sum of N5,000,000,000 as general and aggravated damages for the arbitrary and unlawful invasion and sealing off of the Plaintiff’s members business premises since September 30, 2019, and for the huge economic loss and depreciation in business fortunes of members of the plaintiff on account of the unlawful sealing off of their business premises since September 30, 2019”.

The Defendants in their defence first alleged that the Plaintiff’s vehicles were smuggled, but the Plaintiff denied it and stated that there were no smuggled vehicles found in the car shops of any of its members visited and sealed by the Defendants’ officers.

Moreover, following the Defendants’ request, the Plaintiffs submitted their import and clearing documents for their vehicles, and after two weeks of checking in the Defendants’ system, the Plaintiffs were informed by the Defendants’ officers that the issue was no longer smuggling, but false declaration and underpayment.

The Defendant admitted sealing 434 car marts/shops of the Plaintiff’s members in Lagos on suspicion of non-compliance with the customs procedure and informed the court that some of the Plaintiff’s members had complied with their directive by making an undertaking to make the additional payment, adding that the car marts of those members had been unsealed.

However, the Plaintiff said those members were coerced/induced by the Defendant into executing undertakings for additional duty payment under duress in the office of the Defendants.

Justice A. O. Awogboro in her judgment delivered on December 27, 2023, held that the only way of proving that an entity is registered is by providing a copy of the Certificate of Incorporation, which the Plaintiff has provided, and the argument of whether it sued as a Registered Trustees instead of an incorporated trustee is of no consequence.

The Judge also held that the sealing of the car marts of the plaintiff’s members was unlawful and arbitrary, adding that there was no justification for the unlawful act.

According to Justice Awogboro, the argument that some members of the Plaintiff have complied by undertaking to make the additional payment as a result of which their car marts were unsealed is not tenable and does not in any way support or justify the arbitrary action of the Defendants because those members did not agree to do so willingly but out of coercion and duress, so that they could be able to carry on with their business.

The Judge granted the major reliefs sought by the plaintiff and an order of mandatory injunction directing the Defendants to, with immediate effect, unseal the business premises of all members of the Plaintiff which was unlawfully and arbitrarily sealed off by officials of the Defendants since September 30, 2019.

The Judge also issued an order of Perpetual Injunction restraining the Defendants from further invading and sealing the business premises of the members of the Plaintiff on the ground that the vehicles in their car shops which had earlier been inspected, assessed and cleared at the port by officers of the Defendant were not properly inspected, assessed and cleared.

The Judge gave an order directing the Defendants to pay to the Plaintiff the sum of N500,000,000.00 (Five Hundred Million Naira) as general and aggravated damages for the arbitrary and unlawful invasion and sealing off of the Plaintiff’s members business premises since September 30, 2019, and for the huge economic loss and depreciation in business fortunes of members of the plaintiff on account of the unlawful sealing off of their business premises since 30th day of September 2019.

Credit :Sahara reporters