Justice Olununmi Abike-Fadipe of the High Court of Lagos State, sitting in Ikeja, has said Union Bank Plc ceases to have the power to pursue the alleged indebtedness of an oil company, Global Fleet, upon the sale of the said alleged indebtedness to Asset Management Corporation of Nigeria, AMCON.
The court also said the company’s founder, Barrister Jimoh Ibrahim, was a malicious party as he should not have been a necessary party.
In 2010, AMCON approached the court seeking, among other things, a declaration that the claimant is a duly registered and incorporated limited liability company operating a fixed deposit account domiciled with the defendant bank, payable with demand interest.
A declaration that the amount standing to the credit of the claimant in its fixed deposit account domiciled with the defendant bank is to the tune of £130,726,557.66 (One Hundred and Thirty Million, Seven Hundred and Twenty Thousand, Five Hundred and Fifty Seven Pounds and Six Pence) as at the 30th day of April, 2016.
A declaration that the defendant bank’s unilateral act of converting the sum of £130,720,557.66 One Hundred and Thirty Million, Seven Hundred and Twenty Thousand, Five Hundred and Fifty Seven Pounds and Six Pence) from the claimant fixed deposit account to US Dollars without the due authorization and/or mandate of the claimant is wrongful, null and void.
Also, the defendants in the matter, Nicon Investment, Global Fleet Limited and Barrister Jimoh Ibrahim, in their response asked the court to declare that the action of the counter claimant (Union Bank) in utilizing the sum of £125,060,000 (One Hundred and Twenty Five Million Pounds Sterling) in the account of the 2nd defendant to the counterclaim to liquidate the alleged indebtedness of the 1st and 2nd defendants to counter claimant is wrongful, unlawful, unauthorized and null and void.
An order directing the counter claimant to return forthwith the sum of £125,000,006 (One Hundred and Twenty Five Million Pounds Sterling) which it unlawfully removed from the account of the 2nd defendant to the counterclaim in the counter claimant bank to the 2nd defendant counterclaim or the afore said 2nd defendant courter claim account with interest at the rate of 21% per annum from the 12th of May, 2016 until judgment is delivered in this suit and thereafter at rate of 18% per annum until the judgment sum is fully liquidated.
After arguments were canvassed in the case, Justice Abike-Fadipe held, “Based upon my foregoing findings, I hold that the claimant has proved its claim to all its reliefs save for reliefs 10 and 11 because its alleged debt had been sold to AMCON and it did not prove the alleged overcharges. I hold that the defendant has failed to prove its entitlement to its substantive, alternative or consequential reliefs. I hold that the 2nd defendant to the 1st counterclaim is only entitled to its relief 8; and finally I hold that the 3rd defendant to the 1st counterclaim is entitled to all his reliefs save two”.
The court further held, “The amount standing to the credit of the claimant in its fixed deposit account domiciled with the defendant bank is to the tune of £130,720,557.06 (One Hundred and Thirty Million, Seven Hundred and Twenty Thousand, Five Hundred and Fifty Seven Pounds and Six Pence) as at the 30th day of April, 2010.
“The defendant bank’s unilateral act of converting the sum of £130,720,5S7.06 (One Hundred and Thirty Million, Seven Hundred and Twenty Thousand, Five Hundred and Fifty Seven Pounds and Six Pence) from the claimant’s fixed deposit account to US dollars without the due authorization and/or mandate of the claimant is wrongful, null and void.
“The defendant bank’s unilateral act of converting the fixed deposit of the claimant from British Pounds Sterling to US Dollars and US Dollars to Naira is unauthorised and is null and void.
“The pounds sterling fixed deposit account of the claimant is not tied to the indebtedness of GLOBAL Fleet Ltd and/or meant in any way or manner whatsoever to provide security for the said debt.
“The defendant bank’s unilateral use of part of the claimant’s £130,720,557.06 (One Hundred and Thirty Million, seven Hundred and Twenty Thousand, Five Hundred and Fifty Seven Pounds and Six Pence) to liquidate Global Fleet Ltd debt without the mandate and/or due authorisation of the claimant is wrongful, null and void.
“The indebtedness of Global Fleet Ltd to the Defendant (if any) is neither payable from the £130,720,557.06 (One Hundred and Thirty Million, Seven hundred and Twenty Thousand, Five Hundred and Fifty Seven Pounds and Six Pence) fixed deposit of the claimant nor is any amount deductible therefrom in respect of Global Fleet Lid indebtedness. ”
The court said the bank could not unilaterally deal with or deduct from the claimant’s fixed deposit account without the signatories’ authorisation, mandate, or consent to the fixed deposit account as on the mandate card.
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