In a landmark ruling on October 22, 2026, Justice Suleiman Belgore of the High Court of the Federal Capital Territory (FCT), Abuja, struck down a controversial provision in a contractual dispute between Halkin Exploration and Production Limited (Halkin E&P) and Eunisell Limited. The clause in question imposed a whopping 177% annual default fee, a decision that has been widely criticized as unreasonable. However, in a judgment delivered last week, Justice Belgore declared the provision null and void. The ruling is set to provide some relief for Halkin E&P, who has been embroiled in a protracted legal battle with Eunisell Limited over the issue. According to the Tribune Online, the judgment comes after Halkin E&P challenged the 177% default fee, arguing that it was excessive and unfair. Eunisell Limited had defended the fee, maintaining that it was a standard industry practice. However, Justice Belgore ruled in favour of Halkin E&P, stating that the clause was unconscionable and unreasonable, and thus, void. This decision is significant as it could potentially set a precedent for future contractual disputes involving exorbitant default fees. For Halkin E&P, the ruling brings a welcome end to a long-standing legal battle. However, it remains to be seen how Eunisell Limited will respond to the court’s decision.
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