Breaking News
Translate

Court gives bank 2-week ultimatum over N636.3m debt

By Enyim Enyim

ONITSHA — A Federal High Court in Enugu has given Intercontinental Bank Plc, Onitsha branch, two weeks to deposit in the court’s registry the sum of N636,379,205.56m being judgement debt against it in a suit between the bank and an Onitsha-based transporter, F.G. Onyenwe Motors Nigeria Limited.

The presiding judge, Justice R.A Mohammed, gave the ruling in the suit No.FHC/EN/CS/1/2006, following an application by the bank’s lawyer, Mr Chris Abutu, for a stay of execution of the judgement of the court delivered on Monday, 8 March 2010, which ordered the bank to pay the transport company the judgement sum.

Justice Mohammed further ordered that the money be paid into an interest yielding account of a bank, pending the determination of the substantive suit at the Court of Appeal, directing that it should be paid into ZENITH BANK on Presidential Road, Enugu, failing which the judgement sum would be paid to F.G.Onyenwe motors (Nig).

According to the judgement, the transport company had borrowed money from Intercontinental bank to beef up its business but discovered at a stage that the bank charges it was paying was on the high side and had to engage the services of a professional accounting consultant that confirmed fraud in the charges.

Consequently, the transport firm headed for the court to recover its money when the bank refused to settle out of court.
In a motion on Notice brought under order 32 Rule 1and 2 of the Federal High Court Rules 2009, counsel to the defendant/judgement debtor/Applicant, Mr Chris Abutu, had prayed the court for an order granting a stay of execution of the judgement of the court on grounds that the bank had filed a Notice on grounds of appeal against the judgement.


Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.