- GTBank to pay over N8 billion debt to Innoson
- Bank yet to react to judgement
Technology-driven Nigerian financial institution Guaranteed Trust Bank (GTB) may forfeit its ownership to Innoson Nigeria Limited, if the bank failed to pay N8.7 billion debt owed the Nigeria’s indigenous vehicle production company.
Already, Innosson has instituted a move to take over GT Bank following a ruling by the Supreme Court over the bank’s N8.7 billion indebtedness to the company.
The latest action of the founder of Innoson Chief Dr Innocent Chukwuma, against the bank may cause a heavy financial damage to the bank.
He made the move 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.
Recalled that in a landmark decision on February 27th 2019, the Supreme Court had dismissed GTB’s appeal marked SC. 694/2014- against the judgment of Court of Appeal, Ibadan Division.
The Court of Appeal February 6, 2014 had 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 per cent interest, per annum, on the judgment sum until the final liquidation of the judgment debt.
But GTBank failed to obey the judgment of the Court of Appeal, and approached the Supreme Court to challenge the Court of Appeal’s decision.
Victory for Innoson
In a ruling delivered by Honourable Olabode Rhodes-Vivour JSC on Wednesday, “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.”
A statement by the Innoson group’s Head of Corporate Communications, Cornel Osigwe disclosed that “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 hasn’t reacted to the judgement.