*The petitioner, Petronella (Nigeria) Limited, sues Innoson Vehicle Manufacturing (IVM) Company to the Federal Competition and Consumer Protection Commission, claiming that out of 12 vehicles the company ordered and estimated at N415 million, Innoson Motors delivered only eight without meeting the agreed specifications

*’If the company brings my vehicles, I will pay them their money,’ Innocent Chukwuma, Chairman, Innoson Vehicle Manufacturing Company, reportedly says

Alexander Davis | 绿帽献妻

For alleged failure of the automobile manufacturing company to deliver on an invoiced and paid order, Petronella (Nigeria) Limited has sued Chief Innocent Chukwuma’s Innoson Vehicle Manufacturing (IVM) Company to the Federal Competition and Consumer Protection Commission (FCCPC), in Abuja, FCT.

绿帽献妻 reports聽 in a suit filed by Barr. Olaniwun Ajayi, a lawyer, the petitioner claimed that out of the 12 vehicles ordered and estimated at N415 million, Innoson Motors delivered only eight without meeting the agreed specifications.

The petition dated January 10, 2023, and addressed to the Executive Vice-Chairman and Chief Executive Officer (CEO) of FCCPC, was made available to reporters Sunday, January 29, in Awka, Anambra State capital.

The petitioner’s complaints

The petitioner stated: 鈥淒espite having received about N415 million from Petronella by 29 October 2021 for twenty units of the IVM Granite, IVM did not deliver the vehicles within the two-week timeframe that it had promised.

“When IVM finally delivered vehicles to Petronella, it delivered only nine vehicles, one of which it immediately retrieved because of a defect in the engine, so Petronella was ultimately left with eight vehicles of the twenty that IVM had agreed to supply. IVM never delivered the remaining twelve vehicles.

Petronella Limited said: 鈥淐rucially, the vehicles that IVM delivered did not meet the specifications that IVM had represented that they would meet.

“Specifically, the vehicles did not possess a five-star NCAP rating.”

The company in the petition also noted “when Petronella requested an NCAP crash test report, IVM did not provide one; instead, IVM forwarded by e-mail a document that had the appearance of a crash test report, but which gave no indication that it had been issued by a crash testing authority.

鈥淧etronella made repeated requests to IVM for details of the authority that issued the crash report via emails dated 20 and 22 November 2021, as well as a letter dated 21 November 2021. IVM did not respond to these requests.”

Barr. Ajayi further maintained that IVM鈥檚 false representations and failure to refund the money paid to it had caused Petronella to incur huge losses, including about N805, 443 per day in expected income from the rescinded SPDC lease, from 04 November, 2021, to date.

The lawyer as well disclosed that his client obtained a substantial part of the purchase price through a bank loan, which was hoped to be repaid from the proceeds of the SPDC lease.

The lawyer, who sued Innoson Vehicles on behalf of Petronella (Nigeria) Limited, also asked the market regulatory Commission to investigate the allegations levelled against the motor manufacturing company and appropriate relief provided to his client (Petronella).

Violation of provisions of FCCPC Act, 2018

The petitioner as well accused Innoson Manufacturing Company of violating the FCCPC Act 2018, and sundry infractions by false representation, insisting that his client should be refunded N415 million paid to the motor manufacturing company and due compensation paid.

The petition stated: 鈥淲e are solicitors to Petronella (Nig) Limited (鈥淧etronella鈥� or 鈥渙ur client鈥�), a limited liability company duly registered under the laws of the Federal Republic of Nigeria, on whose instructions we write.

鈥淧etronella purchased goods from Innoson Vehicle Manufacturing Company Limited (鈥淚VM鈥�), and in the course of that relationship, IVM behaved in ways that breached several provisions of the Federal Competition and Consumer Protection Commission Act, resulting in considerable damages to our client.”

Petitioner’s prayers to聽 regulators

The company’s lawyer wrote in the petition: “We urge the Commission to investigate IVM鈥檚 unlawful behaviour and cause IVM to pay due compensation to our client.

鈥淧etronella carries on business as an oil servicing company. Its business involves leasing operational vehicles to, and maintaining the fleet of oil companies in Nigeria.

“In September 2021 Petronella entered into an agreement with Shell Petroleum Development Company of Nigeria Ltd. (鈥淪PDC鈥�), under which Petronella would provide SPDC with pick-up trucks for use in SPDC鈥檚 operations.”

Ajayi stated: 鈥淕iven the environment in which SPDC operates, vehicles intended for the company鈥檚 use must meet certain engineering and safety specifications.

“In particular, SPDC required that vehicles leased from Petronella must possess a five-star New Car Assessment Programme (NCAP) rating.

鈥淓ager to support local enterprise, Petronella opted to buy made-in-Nigeria vehicles rather than vehicles of foreign manufacture.”

The petitioner also said: “Petronella, therefore, approached IVM in September 2021 and inquired about IVM鈥檚 ability to produce and supply Petronella with vehicles that meet SPDC鈥檚 specifications.

“In an e-mail to IVM on 04 September 2021, Petronella鈥檚 Managing Director listed the specifications that SPDC required and sought assurances that IVM vehicles met those specifications.

鈥淥ne of the requirements listed in Petronella鈥檚 e-mail was that ‘all vehicles must have New Car Assessment Programme (NCAP) 5-Star rating.’ 鈥�

“A copy of the e-mail of 04 September 2021 from Petronella to IVM is attached herewith as Annexure A.”

It noted: 鈥淚VM responded to Petronella鈥檚 inquiry by an e-mail dated 07 September 2021, assuring Petronella that ‘IVM Vehicles have all the features as requested by your client, as contained in your email of September 04, 2021.’ ”

The petitioner’s said: 鈥淥n the strength of IVM鈥檚 representation, Petronella requested, and IVM issued an invoice for twenty units of IVM鈥檚 five-seater, double-cabin, 3.0L diesel pick-up known as the IVM Granite.

“Each unit of the IVM Granite was priced at N21.5million, bringing the price for all twenty vehicles to a total sum of N430million. Petronella鈥檚 request for an invoice was conveyed by email dated 23 September 2021.”

The lawyer also stated: 鈥淗aving received the invoice, Petronella placed an order for twenty units of the IVM Granite on 11 October 2021, and also paid a deposit of N65 million.

“Petronella then paid the rest of the purchase price in two tranches, comprising N80 million on 28 October 2021 and N270 million on 29th October 2021, leaving a balance of only N15 million. IVM issued a receipt for the initial deposit of N65m which and assured Petronella that the vehicles would be delivered within two weeks from 11 October 2021.

鈥淚VM only supplied eight out of twenty vehicles, the vehicles supplied did not have the features that IVM claimed they would have, and IVM has refused to refund the money paid by Petronella.鈥�

When a reporter contacted him on the telephone for reaction to the current petition against the company, Chief Innocent Chukwuma, Chairman of Innoson Vehicle Manufacturing Company Limited reportedly said: 鈥淭he matter is in court and the complainant is still with my vehicles.

“If the company brings my vehicles, I will pay them their money.鈥�

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