Cement Grade Battle: Court Retains Order Against SON
Justice A. R Mohammed of a federal high court siting in Abuja on Tuesday maintained its earlier position on the ongoing cement grading legal battle between the Standard Organisation of Nigeria, SON, and the Ministry of Industry, Trade and Investment on one side and Larfarge Cement WAPCO on the other.
The court insisted that there is need for the government standard agency and the Trade and Investment ministry to explain the rationale behind the recently introduced cement grading which they now want cement manufacturers in the country to comply with.
Justice Mohammed refused an applications brought by SON and the ministry for an order setting aside the Court's earlier order where the court directed them to come and show cause why they should not be restrained from enforcing the new cement grade, as requested by Lafarge in an ex-parte application.
By maintaining its position on the issue, SON and the Trade and Investment minister, Dr. Olusegun Aganga, are still expected to come and explain to the court why they should not be restrained from enforcing the new policy on cement grade.
Lafarge had, upon the introduction of the new cement grade, sued SON and the minister, challenging the propriety of the policy.
Suspecting that the defendants could penalize it for not meeting the new standard before the determination of its suit, Lafarde applied ex-parte for an order restraining the government agencies from enforcing the new policy.
The court declined to grant the order sought ex-parte, but ordered the defendants to appear and show cause why the restraining order sought ex-parte by Lafarge should not be granted.
The embattled cement manufacturer is contending that the SON did not comply with due procedure in introducing the new cement standard, and that the license it obtained for the manufacturing of the All Purpose 32.5 grade which SON seeks to restrict its use to plastering works alone, was still valid up till August 2016.
It also argued that the SON and the minister lacked the powers to force it to manufacture according to the new standard, because due process was not followed in introducing it.
Lafarge also contended that it was wrong for SON to compel it to adopt the new standard when the license it was granted for the manufacture of its current grade of cement - All Purpose 32.5 cement – will expire by August 2016.
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