A winding-up petition against Frutta Juice and Services Limited, a well-known Nigerian beverage company, is set for hearing after the Federal High Court in Lagos granted leave to advertise the case. The petition, filed by Saudi Modern Packaging Factory Co. Ltd., alleges that Frutta Juice owes $53,026.26, a debt it has allegedly failed to settle despite repeated demands. The court’s decision, delivered on July 24, 2026, by Justice Musa Kakaki, allows the petitioner to publish the notice in national dailies and the Federal Government Official Gazette. Creditors and contributories have been notified and invited to appear at the hearing scheduled for November 24, 2026.
The petition, numbered FHC/L/CP/802/2023, was initially filed in April 2023. It asserts that Frutta Juice is unable to meet its financial obligations, particularly the outstanding payment to the Saudi-based packaging firm. The court considered an application under Rule 19(1) of the Companies Winding-Up Rules, 2001, which governs the advertising of such petitions. Although Frutta Juice opposed the application, it did not dispute the existence of the debt. Instead, the company cited economic challenges from the COVID-19 pandemic and the continued depreciation of the naira against the US dollar as reasons for the delay in payment.
Frutta Juice maintained that it remains financially capable of settling the debt and presented documents including monthly production records and a list of authorised distributors across Nigeria to support its operational status. However, Justice Kakaki noted that while these documents show the company is active, they do not conclusively refute the claim that it has failed to pay the debt despite multiple requests. The judge ruled that the petitioner had established a prima facie case based on an undisputed debt, and the respondent’s explanations would be evaluated during the substantive hearing.
The court ordered the petitioner, represented by O.T. Opara, to file an affidavit of compliance with proof of publication after the advertisement appears. Iluad Adams appeared for Frutta Juice and Services Limited during the proceedings. The ruling underscores the legal process for corporate insolvency in Nigeria, where initial claims are assessed before full hearings. This case highlights the pressures faced by businesses amid fluctuating foreign exchange rates and global economic disruptions. As the hearing approaches, stakeholders will closely watch how the court resolves the financial dispute and whether Frutta Juice will face formal winding up.
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