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Securities company drags bank to court over losses

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By Abdulwahab  Abdulah
A securities trading company, Treasure Capital Trusts Ltd, has filed a N5.4 billion suit against the United Bank of Africa, UBA, for alleged income it lost as a result of a mareva injunction procured and executed against it by the bank.

In a suit filed before a Lagos High Court sitting in Igbosere, the company is demanding for the damages to assuage its loss, as well as the enforcement of the undertakings by the bank to indemnify the respondents in damages if it turns out that the applications for mareva injunctions ought not to have been granted.In the suit, with No. LD/464/2013, Treasure Capital & Trusts Limited claimed that its business was completely shut down for a period of about two years owing to its inability to perform any transaction on its accounts due to the mareva injunction.

It claimed further that it was unable to conduct its businesses as its entire accounts were suspended and all on-going transactions were truncated as there was no account to settle its transactions.

According to the company in its averment, it claimed that UBA Plc, sometime in 2011 instituted a suit against Mobil Workers (Eket) Multi-Purpose Co-operative Society Limited, where it joined Treasure Capital & Trusts Limited as a co-defendant inSuit No.FHC/L/CS/697/2011 for the enforcement of outstanding indebtedness of Mobil Workers (Eket) Multi-Purpose Co-operative Society Limited to it.

Subsequently, the bank applied for both interim and interlocutory mareva injunctions against the defendants to freeze the assets of Treasure Capital including all such funds standing to its credit with some banks, but gave undertakings to indemnify the respondents in the applications including Treasure Capital & Trusts Limited, in damages if it turns out that the applications for mareva injunctions ought not to have been made in the first place.

 

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