BY: Ikenna Oluka
Nigeria’s indigenous car manufacturing company Innoson, has given details of how it reportedly obtained a court order allowing it to take control of one of the country’s largest financial institutions, Guaranty Trust Bank PLC (GTBank).
Head of Corporate Communications, Innoson Group, Cornel Osigwe, said in a statement on that the company obtained Writ of Fi Fa from the Federal High Court, Awka, the Anambra State capital, to enforce earlier judgments from the Ibadan Division of the Federal High Court and also the Nigerian Supreme Court.
Writ of Fieri Facias (or Writ of Fi Fa) is a document issued by the court for the purpose of effecting court judgment on a debtor’s property. It is also the legal instrument by which the assets of a judgment debtor may be seized.
Innoson in its statement said its chairman, Innocent Chukwuma, through a Writ of Fi Fa has taken over GTBank for and on behalf of Innoson Nigeria Ltd as a result of the bank’s indebtedness to Innoson Nigeria Ltd.
The statement reads: “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 a ruling delivered by Honourable Olabode Rhodes-Vivour JSC on Wednesday, February 27th, 2019, 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 Fi fa.”
A GTBank statement signed by the Company Secretary Erhi Obebeduo said that the judgement in question 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
See the letter as attached:
