In a bid to seek legal redress for alleged economic
misfortune suffered as a result of their accounts frozen in 15 different banks
by means of unjustifiable court order obtained by Guaranty Trust bank Plc, four
limited liability companies, Innoson Nigeria Ltd, Innoson Technical and
Industrial Company, Innoson Vehicle Manufacturing Company and Innoson Autoparts
Manufacturing Company have slammed N30billion lawsuit on the bank.
misfortune suffered as a result of their accounts frozen in 15 different banks
by means of unjustifiable court order obtained by Guaranty Trust bank Plc, four
limited liability companies, Innoson Nigeria Ltd, Innoson Technical and
Industrial Company, Innoson Vehicle Manufacturing Company and Innoson Autoparts
Manufacturing Company have slammed N30billion lawsuit on the bank.
According to a statement of claim filed before a Federal
High Court in Awka, Southeast, Nigeria, by a Lagos lawyer, Professor MacCarthy
Mbadugha, the companies said that what led to the current legal hostility
started on 1 September, 2014 when Guaranty Trust Bank Plc served on Innoson
Nigeria Limited a court order dated 1 September, 2014 with suit number
FHC/L/CS/1119/2014 filed before a Federal High Court in Lagos, Southwest,
Nigeria, between Guaranty Trust Bank and Innoson Nigeria Limited issued by
Justice Okon Abang ordering that pending the hearing and the determination of
the substantive suit all commercial banks in Nigeria are restrained from
accepting, honouring, or giving effect in any manner whatsoever to any mandate
or instruction presented to them by Innoson Company or any of its agents or
nominees for withdrawal of any sum of money standing to the credit of any
account maintained by the company in all the banks.
High Court in Awka, Southeast, Nigeria, by a Lagos lawyer, Professor MacCarthy
Mbadugha, the companies said that what led to the current legal hostility
started on 1 September, 2014 when Guaranty Trust Bank Plc served on Innoson
Nigeria Limited a court order dated 1 September, 2014 with suit number
FHC/L/CS/1119/2014 filed before a Federal High Court in Lagos, Southwest,
Nigeria, between Guaranty Trust Bank and Innoson Nigeria Limited issued by
Justice Okon Abang ordering that pending the hearing and the determination of
the substantive suit all commercial banks in Nigeria are restrained from
accepting, honouring, or giving effect in any manner whatsoever to any mandate
or instruction presented to them by Innoson Company or any of its agents or
nominees for withdrawal of any sum of money standing to the credit of any
account maintained by the company in all the banks.
In the said order of the court the bank indemnified the
company as to any loss that may be incurred in the unlikely event that the
application ought not to have been granted. The company operates Current
Accounts in 15 banks of eighteen banks listed in the order.
company as to any loss that may be incurred in the unlikely event that the
application ought not to have been granted. The company operates Current
Accounts in 15 banks of eighteen banks listed in the order.
The basis of the bank’s action against the company was that
the company is allegedly indebted to the bank to the sum of N1.5 billion and
that rather than the company repay the loan, it diverted same and was in the
process of dissipating its assets in order to avoid repaying the loan.
the company is allegedly indebted to the bank to the sum of N1.5 billion and
that rather than the company repay the loan, it diverted same and was in the
process of dissipating its assets in order to avoid repaying the loan.
Based on this court order, all the companies accounts were
frozen. Consequently, the activities of the companies were grounded as the
companies could not pay duties and clearing of imported goods, thereby
incurring heavy demurrage.
frozen. Consequently, the activities of the companies were grounded as the
companies could not pay duties and clearing of imported goods, thereby
incurring heavy demurrage.
The halt of production by the companies resulted in loss of
business and profit, deterioration of some of its raw materials, as they became
unfit for use, staff were rendered redundant whilst they continued to pay
salaries, some of the Chinese expatriates left the company for China while some
of them were paid $66,000 dollars per month for seven months during their redundancy
to avoid heavy cost of searching for expertise of their caliber given their
skills.
business and profit, deterioration of some of its raw materials, as they became
unfit for use, staff were rendered redundant whilst they continued to pay
salaries, some of the Chinese expatriates left the company for China while some
of them were paid $66,000 dollars per month for seven months during their redundancy
to avoid heavy cost of searching for expertise of their caliber given their
skills.
Their machines also began to deteriorate because machines
were not functioning.
were not functioning.
The plaintiff companies averred that the action of the bank
injured their credibility and presented them as bad debtors.
injured their credibility and presented them as bad debtors.
However, on the 10th of June, 2015, base on an application
and titanic legal argument presented by Mbadugha that the order was obtained by
the bank by suppression, concealment or failure to disclose material facts
before the court to set aside the order, Justice Saliu Saidu set aside the
order and as well as struck out the entire suit freezing the accounts of the
plaintiffs but before the order was set aside the companies have incurred
monumental losses running into billions of naira as enumerated above.
and titanic legal argument presented by Mbadugha that the order was obtained by
the bank by suppression, concealment or failure to disclose material facts
before the court to set aside the order, Justice Saliu Saidu set aside the
order and as well as struck out the entire suit freezing the accounts of the
plaintiffs but before the order was set aside the companies have incurred
monumental losses running into billions of naira as enumerated above.
Consequently, the claims of the companies against GTB are as
follows:
follows:
N20Billion being special damages arising from the bank’s
unlawful freezing of the companies accounts in fifteen banks from 1st of
September 2014 to 15th of June 2015.
unlawful freezing of the companies accounts in fifteen banks from 1st of
September 2014 to 15th of June 2015.
(ii) N5 billion for reputational and injuring the companies.
(iii) N5Billion as general damages and 22 per cent interest
on the sum claimed till judgement is delivered and same rate till liquidation
of the judgement debt.
on the sum claimed till judgement is delivered and same rate till liquidation
of the judgement debt.
Meanwhile, based on an application filed before the court on
behalf of the companies, the court has ordered that all court processes should
be served on Guaranty Trust bank Plc at its Headquarters at Plot 1669 Oyin
Jolayemi street, Victoria island Lagos South West Nigeria.
behalf of the companies, the court has ordered that all court processes should
be served on Guaranty Trust bank Plc at its Headquarters at Plot 1669 Oyin
Jolayemi street, Victoria island Lagos South West Nigeria.
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