Isaac Anumihe
Leading banks in the country are in for tough times following a streak of court case judgements against the industry. Just as the Guaranty Trust Bank (GTB) is adjusting to pay a whopping N14 billion awarded to Innoson Group by Supreme Court on June 7, 2018, a judge of the Lagos division of the Federal High Court also ordered the First Bank of Nigeria (FBN) to pay Ogoni Community in Rivers State the sum of N122 billion bond it guaranteed on behalf of Shell Petroleum Development Company Limited (SPDC).
The Supreme Court on June 7, 2018 had ordered Guaranty Trust Bank (GTB) to pay N14 billion to Innoson Group within 14 days.
The Federal High Court had earlier ordered GTB to pay Innoson a judgement debt of about N6 billion to the deputy chief register of the court who shall pay same into an interest-yielding account pending the determination of GTB’s appeal.
The N6 billion came out of a excess and unlawful charges, which GTB took from Innoson’s account domiciled with it.
But GTB appealed at the Court of Appeal, Enugu Division, that complying with the order will adversely affect operations and deplete depositors’ funds. It however proceeded to the Supreme Court, which on June 7, 2018 not only affirmed the judgement of the High Court, but ordered the bank to pay N14 billion to the defendant.
In a statement, Head of Corporate Communications of the motor firm, Cornel Osigwe, at the weekend insisted that
GTB should do the needful by complying with the court’s decision.
Innoson said the Supreme Court’s ruling made the Court of Appeal’s ruling effective. However, GTB had said that it did not object to the Supreme Court’s order to comply. With the outcome of the legal battle which started in September 2013.
But equally of significance is the June 6, ruling by Ibrahim Buba, a judge of the Lagos Division of the Federal High Court ordering the First Bank of Nigeria (FBN) to pay Ogoni Community in Rivers State N122 billion bond guaranteed on behalf of Shell Petroleum Development Company Limited (SPDC).
The N122 billion bond is in respect of a June 2010 lawsuit against SPDC in an oil spill suit launched by Ejama Community in Ogoniland, Rivers State. In a statement Sunday, at the weekend, the bank said the order could “not hold water” because it was not a party to the suit.
“First Bank of Nigeria Limited (FirstBank) was not a party to the suit and earlier order of Justice I. N. Buba dated June 14, 2010 in respect of which his lordship has now committed the board members of FirstBank for contempt,” the statement read.
“In view of the fact that FirstBank and its board members were not parties to the earlier orders of Justice Buba, over which he subsequently assumed jurisdiction in respect of contempt outside the face of the court, and His Lordship’s earlier orders did not direct either FirstBank or its board members to perform any obligation, neither did it impose any task on FirstBank. Suffice it to say that FirstBank did not and could not have disobeyed any order made by Justice I. N. Buba in Suit No: FHC/PH/CS/231/2001 Chief Isaac Osaro Agbara & 9 Ors. V. Shell Petroleum Development Ltd, Shell International Petroleum Limited and Shell International Exploration and Production BV (Shell) made on June 14, 2010, since there was no order made against it.”