LEGAL PRINCIPLE: COMPANY LAW — Receivership — Locus Standi of Debenture Holder to Apply for Directions Under Section 391 of CAMA
PRINCIPLE STATEMENT
A receiver or manager may apply to the court for direction in relation to any particular matter arising in connection with the performance of his functions. The court may give such directions or make such order as it thinks just.
RATIO DECIDENDI (SOURCE)
Per Ejiwunmi, JSC, in Unibiz Nigeria Limited v. Commercial Bank Credit Lyonnais Ltd. (2003) NLC-152001(SC) at p. 7; Paras A–B.
"A receiver or manager of the property of a company appointed in accordance with the provisions of subsection (1) of section 390 of this Act, may apply to the court for direction in relation to any particular matter arising in connection with the performance of his functions, and on any such application, the court may give such directions or make such order declaring the rights of persons before the court or otherwise, as it thinks just."
EXPLANATION / SCOPE
A receiver may seek court directions. The principle applies to company law. The court has discretion to make orders. The rule protects the receiver’s proper administration. The court will act justly. The principle is well-established.