The long-running legal battle between Innoson Vehicles Manufacturing, a Nigerian automobile company and Guaranty Trust bank took a new turn during the week with a claim by Innoson motors that it has obtained a court order to take over GTBank.
In a widely circulated statement on Friday, Innoson said the Supreme Court upheld the ruling earlier given at the federal high court in Ibadan mandating them to take over GTBank but the bank has since countered Innoson’s position on the subject matter.
We have produced below the statements from the two warring institutions and will at the end try to separate truth from fiction based on the court judgement.
Innoson’s statement
The statement released Innoson Motors read: “The Chairman of Innoson Group, Chief Dr Innocent Chukwuma, OFR has through a Writ of FiFa taken over Guaranty Trust Bank PLC for and on behalf of Innoson Nigeria Ltd as a result of the Bank’s indebtedness to Innoson Nigeria Ltd. In a landmark decision on February 27th 2019, the Supreme Court of Nigeria dismissed GTB’s appeal – SC. 694/2014- against the judgment of Court of Appeal, Ibadan Division.
“The Court of Appeal, Ibadan division had in its decision of 6th February 2014 dismissed GTB’s appeal against the Federal High Court, Ibadan Division.
“Thus, the Court of Appeal affirmed the judgment of the Federal High Court, Ibadan Division which ordered GTB by way of Garnishee order absolute – to pay N2.4 Billion to Innoson with a 22% interest, per annum, on the judgment sum until the final liquidation of the judgment debt.
“Rather than obey the judgment of the Court of Appeal, GTB approached the Supreme Court to challenge the Court of Appeal’s decision.
“However in an ruling delivered by Honourable Olabode Rhodes-Vivour JSC on Wednesday, February 27th2019, the Lord Justices of the Supreme Court (JSC) dismissed GTB’s appeal and thus affirmed the concurrent judgment of both the Court of Appeal and the Federal High Court, Ibadan Division which ordered GTB by way of Garnishee order absolute – to pay N2.4 Billion to Innoson with a 22% interest, per annum, on the judgment until the final liquidation of the judgment.
“The Judgment debt of N2.4B has an accrued interest as at today of about N6,717,909,849.96 which results to about N8.8 Billion.
“Based on the Supreme Court’s decision of 27th February 2019 the counsel to Innoson, Prof McCarthy Mbadugha ESQ, had approached the Federal High Court, Awka Division for leave to enforce the judgment having obtained Certificates of Judgment from the Ibadan Division of the Federal High Court.
“Having obtained the requisite leave, the Federal High Court issued the necessary process for levying execution – the Writ of Fifa.”
GT Bank: Judgement issued against Custom’s account, not us
In response to Innoson’s position on the judgement, GTBank through its company secretary, Erhi Obebeduo, released a statement which read, “The attention of Guaranty Trust Bank Plc (“the Bank”} has been drawn to statements circulating in the news and social media in respect of a purported enforcement of a Judgment of the Federal High Court, Ibadan, Oyo State. at one of its branches in Anambra State.
“The Bank as a law-abiding corporate citizen is taking all necessary legal steps to address this situation and ensure that no illegal or fraudulent execution is carried out.
“It is important to state that the Judgment allegedly in issue is in respect of Garnishee Proceedings against the account of the Nigerian Customs Service Board domiciled with the Bank and not against the Bank as an entity.
“The Bank remains committed to providing best-in-class customer experience to all its valued Customers.”
Can Innoson take over GTBANK?
The answer to the above question is NO! The Writ of Fieri Facias obtained by Innoson is a legal instrument used to seize the assets of a debtor till the debt in question is liquidated and in this instance, we are looking at a debt of about N8.8 Billion.
With an asset base running into trillions, only a portion of Guaranty Trust Bank assets will be affected by the judgement if and when enforced.
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