The popular beverage company is fighting to avoid liquidation after a Federal High Court ruling allowed a creditor to publicise legal proceedings against it.
Frutta Juice and Services Limited, one of Nigeria's well-known juice manufacturing companies, is at the centre of a legal battle that could potentially lead to its winding-up. The company is facing a petition over an alleged $53,026.26 debt owed to Saudi Modern Packaging Factory Co. Ltd .
What Happened in Court?
Justice Musa Kakaki of the Federal High Court in Lagos granted the Saudi company permission to advertise the winding-up petition against Frutta Juice on July 24, 2026 . The petition, marked FHC/L/CP/802/2023, was originally filed in April 2023 .
Following the court's order, the petition was published in The Guardian newspaper on August 13, 2026, notifying creditors and contributories of the proceedings . The court also directed that it be advertised in the Federal Government Official Gazette and THISDAY newspaper .
The case has been adjourned to November 24, 2026, for the substantive hearing .
Frutta Juice's Defence
The company did not deny owing the debt. Instead, it attributed the payment delay to:
· The economic impact of the COVID-19 pandemic
· The continued depreciation of the naira against the US dollar
Frutta Juice also maintained that it has the financial capacity to repay the outstanding amount .
"Prima Facie Case Established" – The Court's Ruling
While acknowledging that Frutta Juice remains operational—based on documents showing monthly production records and a list of authorised distributors nationwide—Justice Kakaki ruled that these did not conclusively resolve the petitioner's claim .
The judge held that the petitioner had established a prima facie case based on an undisputed debt, and that Frutta Juice's explanations could be properly considered at the substantive hearing .
Important: This Is NOT a Winding-Up Order
It is crucial to note that the court's order only permits the petition to be advertised. Frutta Juice has not been wound up . The substantive petition is still pending before the court.
Frutta Juice Fights Back – Appeal Filed
In a significant development, Frutta Juice has challenged the July 24 ruling at the Court of Appeal. The company is seeking :
· An order to set aside the ruling or dismiss the application that led to the advertisement order
· A stay of implementation pending the appeal
· An order restraining the Saudi company from publishing the petition
Frutta Juice argues that publication before the substantive dispute is resolved could cause serious commercial damage to its business .
What Is a Winding-Up Petition?
A winding-up petition is a legal process through which a creditor asks the court to wind up a company and apply its assets toward settling debts. This is only granted if the court is satisfied that statutory requirements have been met .
Legal Representation
· Petitioner (Saudi Modern Packaging Factory Co. Ltd): O.T. Opara
· Respondent (Frutta Juice and Services Limited): Iluad Adams
What Next?
The substantive hearing of the winding-up petition is scheduled for November 24, 2026 . Meanwhile, the Court of Appeal will consider Frutta Juice's challenge to the advertising order.
The outcome of these proceedings will determine whether Frutta Juice faces liquidation or continues operations uninterrupted. For now, the popular juice brand remains in business while it fights to resolve the dispute through legal channels.
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