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Tuesday 23 June 2015

Why Customer Sued GTB For N30b

Innoson Nigeria Ltd, Innoson Technical and Industrial Company, Innoson Vehicle Manufacturing Company and Innoson Autoparts Manufacturing Company have slammed a N30billion lawsuit on Guarantee Trust Bank (GTB).

PM News reports that the companies sued GTB for alleged economic misfortune suffered as a result of their accounts frozen in 15 different banks by means of supposed unjustifiable court order obtained by GTB.

A statement of claims filed by Professor MacCarthy Mbadugha, the company’s counsel, at a Federal High Court in Awka, Anambra, stated the claims of the companies against GTB as 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.
(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.


The legal tussle 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.

The company’s allegedly indebtedness to the sum of N1.5 billion compelled GBT’s action. The bank claimed the company diverted the loan and was in the process of dissipating its assets in order to avoid repaying the loan.

Justice Okon Abang ordered 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.

As a result, all the companies accounts were frozen and activities of the companies grounded.

The action 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.

On June 10, 2015, Mbadugha argued 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.

The court also 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.

 

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