Court Awards N20.7bn TO Union Bank Against Oil Marketer

Justice Deinde Dipeolu of the Federal High Court in Lagos has awarded N20,732,299,999.21 billion in favour of Union Bank Plc against a petroleum marketer, Kehinde Elliot Ogbor, and his company, Danium Energy Services Limited, over breach of contract.

Justice Dipeolu also ordered Union Bank Plc to take exclusive possession of all properties belonging to Ogbor and his company.

Justice Dipeolu made these orders and other declarations in favour of Union Bank Plc in a judgment delivered under suit number FHC/L/CS/1905/2023.

The properties listed in the ruling include: Plot 13, Zone R, Federal Government Layout, Banana Island Foreshore Estate, Ikoyi, Lagos- Plot 197, Victoria Island Annexe, Lagos Island, Lagos (now known as Plot 325, Akin Ogunlewe Street, Off Ligali Ayorinde Street, Victoria Island, Lagos).

Others are 3A, Bose Enemoh Close, off Inupa Drive, Ikoyi, Lagos, and the company’s Head Office Building, located at 10 Anifowoshe Street, off Adeola Odeku Street, Victoria Island, Lagos.

Other defendants in the case include Ajibola Bankole Adetutu, Garba Mohammed, and Lolag Sons (Nigeria) Company.

Union Bank Plc had dragged the defendants before the court through its lawyer, Adetunji Adeniyi-Adedoyin, and had approached the court to interpret a contract executed between the bank and the defendants, based on several offer letters.

The suit was filed under Section 6(6) of the Constitution of the Federal Republic of Nigeria, 1999, and Order 3, Rules 6 and 9 of the Federal High Court (Civil Procedure) Rules, 2019, within the court’s inherent jurisdiction.

In the suit, the plaintiff had asked the court to determine whether a valid and subsisting contract was created between the Plaintiff and the Defendants by virtue of the Memorandum of Settlement dated March 6, 2018.

The bank also requested the court to issue an order directing the Defendants to immediately settle their outstanding debt to the Plaintiff in the amount of N20,732,299,999.21.

This amount represents the balance due on the first Defendant’s account with the Plaintiff/Applicant as of 24th July 2023, relating to the various facilities extended to the 1st Defendant, which the 2nd Defendant guarantees.

This obligation is confirmed by the Memorandum of Settlement dated 6th March 2018, executed between the Plaintiff/Applicant and the 1st Defendant.

The Plaintiff further sought an order directing the police, as well as the Commandant-General of the Nigeria Security and Civil Defence Corps, their assistants, and all officers under their command, to assist the Plaintiff/Applicant and its agents in taking exclusive possession of the properties.

In delivering judgment in the case, Justice Dipeolu carefully considered the arguments presented by the counsel for both parties and reviewed all the documents submitted. He dismissed the defendants’ counter-affidavit and counterclaim.

The judge then granted all the reliefs requested by Union Bank against the petroleum marketer Kehinde Elliot Ogbor, his company Danium Energy Services Limited, and the other defendants.