Court Fast-Tracks Suit Over Alleged Breach of Dolphin Steels Assets Sale Agreement

Justice Olugboyega Ogunfowora of the Ogun State High Court sitting in Ifo has ordered an accelerated hearing in a suit challenging the alleged breach of a contract for the proposed sale of the assets of Dolphin Steels Limited, currently under receivership.

Justice Ogunfowora gave the order after rejecting an application by the claimant, Prodigy Finance Limited, for an interim injunction in the suit marked HCF/146/2026 against the receiver-manager of Dolphin Steels Limited, Olugbenga Ajala, and Zenith Bank Plc.

In a ruling, the judge held that although Prodigy Finance had admitted that the principal sum under the disputed agreement had been refunded, its claim for damages arising from the alleged breach of contract remained a substantive issue to be determined at trial.

To facilitate prompt resolution, the court shortened the time for the defendants to file their respective statements of defence to 21 days, while the claimant was granted seven days to file a reply, if necessary.

Justice Ogunfowora subsequently fixed September 7, 2026, for the start of the pre-trial conference.

The dispute originated from an agreement regarding the sale of the assets of Dolphin Steels Limited located at Papalanto in Ifo Local Government Area of Ogun State.

Prodigy Finance is seeking, among other remedies, an order of specific performance, alleging that the defendants breached the terms of the agreement.

At the previous hearing on July 23, counsel for the claimant, Oluwatosin Olumakin, urged the court to restrain the defendants from selling, transferring or otherwise dealing with the disputed assets until the substantive suit was determined.

The application was argued in the absence of the defendants after the court confirmed they had been duly served with hearing notices and were out of time to respond. Justice Ogunfowora then reserved ruling until August 3.

In the ruling, the court stated that the interests of justice would be better served by an accelerated hearing of the substantive suit rather than granting interim injunctive relief, thereby allowing the parties to fully explore the issues surrounding the alleged breach of contract and the claimant’s claim for damages.