N13bn debt: GTBank violates judgements in favour of Stallion — Court

The Federal High Court sitting in Lagos has held that Guaranty Trust Bank (GTBank) was in violation of the consent judgement entered by the court on December 17, 2019, which was in favour of Stallion Nigeria.

Ruling on an application filed by the law firms of Kanu Agabi & Associates, Wahab Shittu, SAN, and Bonajo Badejo & Co., on behalf of Stallion, the presiding judge, Justice Allagoa, held that the execution which was purportedly done, while the court was yet to determine the timeline for the completion of the forensic audit pursuant to the consent judgement of the court was wrong and done with the intention to undermine the proceedings before the court.

The Court of Appeal presided over by the Justices Daniel-Kalio, Sirajo and Banjoko, had previously delivered judgement in favour of Stallion Nigeria against Guaranty Trust Bank Plc on February 24, 2022, and set aside the ruling of Justice Saidu in favour of GTB.

The court held that GTB could not rely on its own breach of the judgement to act or levy execution against the assets of Stallion Nigeria.

READ ALSO: GTBank takes over Stallion’s assets over N13bn debt

The court held that the execution which was purportedly carried out on February 1, 2023, and subsequent steps by the bank was not authorised by the court.

The court, however, set aside “any and every step taken by Guaranty Trust Bank Plc before, on or after 1 February 2023 in purported execution of the Consent Judgment of the Court dated 17 December 2019, in the light of the Judgment of the Court of Appeal delivered on 24 February 2022 in favour of Stallion Nigeria.”

It would be recalled that Guaranty Trust Bank Plc, on February 1, 2023, relying on the ex-parte order granted by Justice Saidu on December 2, 2019, which had expired, and the subsequent consent judgement, which GTB had breached and violated, tried to illegally enter one of Stallion’s properties in Victoria Island, Lagos.

Stallion Nigeria in its application, which was granted by the court had contended that the preliminary KPMG forensic audit report had established that GTB overcharged Stallion, in excess, fraudulent and illegal charges of N4,693,625,637.49.GTB accepted this finding by the auditors.

Stallion Nigeria contends that it is not owing GTB any longer and that on the contrary, it is on record that it has paid more than what was outstanding to GTB by N6,423,700,000, “a fact GTB is fully aware of but continues to violate its own agreement, the court orders, and judgement of the courts.”

The Star