{
  "id": 16415001,
  "title": "Court Bars Eunisell from Enforcing 177% Default Charges against Halkin",
  "url": "https://urgent.news/2026/10/25/court-bars-eunisell-from-enforcing-177-default-charges-against-halkin",
  "topic": "world",
  "section": "World",
  "published": "2026-10-25T02:12:00.000Z",
  "source": {
    "name": "This Day",
    "slug": "this-day",
    "url": "https://www.thisdaylive.com/2026/10/25/court-bars-eunisell-from-enforcing-177-default-charges-against-halkin/"
  },
  "original_language": "en",
  "account": "On October 22, 2026, the High Court of the Federal Capital Territory in Abuja issued a permanent restraining order, barring Eunisell Limited from enforcing a contractual clause that imposed a default fee of 177% annually on Halkin Exploration and Production Limited. Justice SB Belgore found the provision to be unconscionable and contrary to public policy, nullifying all related invoices and assessments. The ruling has significant financial implications for the parties, as Eunisell had previously sought $10,240,679.98 from Halkin, including $7,624,171.51 in late-payment charges. However, the judgment did not dismiss the entire $10.24 million debt claim, which is separate from the penalty relief granted. The dispute arose from a service agreement under which Eunisell provided engineering services at Halkin's Atala Marginal Oilfield, with Halkin required to pay a fixed daily fee of $9,900. Clause 10.4 stipulated that payments after the contractual deadline would incur a daily 0.5% default charge. Justice Belgore acknowledged the freedom for parties to negotiate terms but held that unconscionable penalties cannot be enforced. The court found the provision excessive, noting that it was denominated in US dollars, potentially shielding Eunisell from local inflation and currency fluctuations. Eunisell had failed to respond to Halkin's amended summons within the permitted timeframe, leading to the admission of Halkin's evidence. The court also dismissed Eunisell's objection to the suit's competence, as it concerned a specific contract provision, and rejected an application to challenge the court's record. Eunisell was ordered to pay N1 million in costs to Halkin for the unsuccessful application.",
  "summary": "Wale Igbintade The High Court of the Federal Capital Territory (FCT), Abuja, has permanently restrained Eunisell Limited from demanding or enforcing late-payment charges imposed on Halkin Exploration and Production Limited",
  "key_points": [
    "High Court bars Eunisell from enforcing 177% default charges",
    "Justice Belgore deems penalty unconscionable and nullifies invoices",
    "Eunisell ordered to pay N1 million in costs to Halkin"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}