… grants damage to N50m in favor of Nicon Investment Ltd … Union Bank directs the Court of Appeal
A superior court of the state of Lagos has criticized £ 1 million in damages against Union Bank PLC for negligence and breach of its fiduciary tariffs to Nicon Investment Limited.
Delivering a ruling on Wednesday in a marked demand LD/1074/2010 presented by Nicon Investment Limited against Union Bank, Judge O. Abike Fadipe said that Nicon Investment Limited (claimant) is a duly registered and incorporated limited liability company that operates a fixed deposit account with the Union Bank (defendant) payable with the interest to the demand.
The Court held in the judgment that the sum of £ 130,720,557.06 remains in Credit of Nicon Investment Limited in its fixed deposit account domiciled with the Bank of the Union as of April 30, 2010.
Judge Abike-Fadipe also held in the judgment that the unilateral conversion of the £ 130,720,557.06 of the claimant to US dollars without the proper authorization or mandate of the claimant is unfair, null and null.
According to the judge, “the unilateral act of the bank sued to convert the fixed deposit of the British Libras Flame sterling to US dollars and dollars to Naira is not authorized and is void and without effect.”
The judge agreed that the fixed deposit account of the claimant sterling is not linked to the borrowing of oil and limited global fleet gas or is understood in any way or so that it provides security for said debt.
The Court argued that the unilateral use of the bank part of the £ 130,720,557.06 of the claimant to liquidate Global Fleet Limited's debt without the claimant's mandate is incorrect, null and null.
Consequently, the Court granted the sum of N50 million to the claimant against the accused as damages for illegal deduction and illegal sanctions and charges made by the claimant's account by the bank.
He ordered the bank to take advantage of the claimant with his account statement of the fixed deposit account, as well as the reconciliation of the same from the beginning to date and that the bank must also make an account of all the transactions in the Fixed Deposit account of the claimant's pounds along with all the accumulated interests.
The court continued and made an order annulled all the acts of the bank related or connected and affecting the Fixed Deposit of the claimant, in the face of his conversion to US dollars, Naira and Unilateral liquidation of the indebtedness of Global Fleet Limited and Nicon Investment Limited of said account.
Judge Abike-Fadipe dismissed the reconvention of the defendant in its entirety with a cost granted to the claimant and the third defendant to the contrademanda contradiction in the sum of N10 million, respectively.
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Nicon Investment Limited, where appropriate, had claimed that he maintained a bank /client relationship with the defendant, who operated a fixed deposit account of British sterling pound with the bank. The Court also ordered an annual interest of 5 percent since May 2010 that was used to completely liquidate the second accused of the first anticemer's debt (Global Fleet Oil and Limited Gas).
Meanwhile, Union Bank of Nigeria PLC has announced that it has instructed its legal team to immediately appeal a recent judicial ruling that could result in a responsibility exceeding N400 billion plus accumulated interests.
The case involves Nicon Investment Limited, Global Fleet and Business Mogul, Senator Jimoh Ibrahim.
In a statement published on Wednesday, the Bank recognized the judgment of Judge Abike Fadipe of the Superior Court of Ikeja, who considered that the bank was responsible in an issue related to the Deposit Agreement in dispute.
The statement, signed by Mrs. Olufunmilola Aluko, brand director and marketing of Union Bank, emphasized the institution's commitment to professionalism, ethical conduct and legal compliance.
“While we respect the authority of the Court, we do not agree with the sentence pronounced and we have instructed our lawyers to present an appeal against it immediately,” said the bank.
The Bank expressed concern about several aspects of the sentence, including the conclusions of the Court on the consolidation of indebtedness, Locus Standi and the responsibility of third parties, which according to him are executed in a conflict with established legal principles and their understanding of the facts.
“We trust our legal position and we intend to strongly pursue all legal routes to ensure that justice is delivered. Union Bank had previously transferred the debt obligations relevant to the Nigeria Asset Management Corporation (AMCON), and we maintain that all the actions taken in this sense were in line with the applicable laws and the solid banking practice.”
The bank also reaffirmed its commitment to safeguard the interests of interested parties and defend the integrity it has built during its more than 100 years of history.
The case took a dramatic turn when the Federal Superior Court in Lagos ordered Union Bank to reimburse £ 137 million (approximately N400 billion) to Nicon Investment Limited, together with an annual interest of 5 percent accumulated in 14 years.
The sentence was seen as a significant legal victory for Senator Ibrahim, who currently represents the Senatorial District of Ondo South.
The court ruled that Union Bank had not fulfilled the terms of the long -standing deposit agreement, which led to the monumental sentence.
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