The Federal High Court in Lagos has ordered a petroleum marketer, Kehinde Elliot Ogbor, and his company, Danium Energy Services Limited, to pay a judgment sum of N20,732,299,999.21 to Union Bank Plc.

Justice Deinde Dipeolu, who gave the order, also granted Union Bank exclusive possession of all properties belonging to Ogbor and his company.

The affected properties include: Plot 13, Zone R, Federal Government Layout, Banana Island Foreshore Estate, Ikoyi, Lagos; Plot 197, Victoria Island Annexe, Lagos Island (now known as Plot 325, Akin Ogunlewe Street, Off Ligali Ayorinde Street, Victoria Island, Lagos); 3A, Bose Enemoh Close, Off Inupa Drive, Ikoyi, Lagos; and the company’s head office building at 10, Anifowoshe Street, Off Adeola Odeku Street, Victoria Island, Lagos.

Justice Dipeolu gave the orders while delivering judgment in a suit filed by Union Bank Plc against Ogbor and his company.

Other defendants in the case include Ajibola Bankole Adetutu, Garba Mohammed, and Lolag Sons (Nigeria) Company.

Union Bank, through its counsel, Adetunji Adeniyi-Adedoyin, had approached the court seeking the interpretation and enforcement of contracts executed between the bank and the defendants through several offer letters and a Memorandum of Settlement dated March 6, 2018.

The bank prayed the court to determine, among other issues, whether the Memorandum of Settlement and the Consent Judgment of April 25, 2018, constituted valid and enforceable contracts between the parties, and whether or not the defendants’ failure to liquidate their indebtedness amounted to a breach of the agreements.

Union Bank also sought orders directing the defendants to immediately liquidate their outstanding debt of N20.73 billion, authorising the bank to take possession and sell the secured properties, and compelling law enforcement agencies — including the Inspector-General of Police and the Commandant-General of the NSCDC — to assist in taking possession if necessary.

The defendants, through their lawyer, Ikenna Emeh, filed a joint counter-affidavit and counterclaim, praying the court to dismiss Union Bank’s suit for lack of merit and to grant the reliefs in favour of Danium Energy Services Limited.

The defendants sought, among others, the vacation of an interim Mareva injunction earlier granted against them; a declaration that Danium was entitled to set off N65.72 billion against the alleged outstanding N16.8 billion debt; an order setting aside the 2018 Memorandum of Settlement and consent judgment on the grounds of fraud, misrepresentation, undue influence, and duress; refunds and damages amounting to over N42 billion, plus interest and penalties for alleged excess bank charges; and a perpetual injunction restraining Union Bank from disposing of Danium’s assets or acting on the alleged indebtedness.

They also contended that the settlement agreement between the parties was conditional upon Union Bank securing the unfreezing of Danium’s accounts by the Economic and Financial Crimes Commission (EFCC), which they claimed the bank failed to do, thereby breaching the terms of the contract.

After reviewing all processes and submissions by counsel, Justice Dipeolu dismissed the defendants’ counter-affidavit and counterclaim, holding that they lacked merit.

The court granted all the reliefs sought by Union Bank, including the enforcement of the Memorandum of Settlement and consent judgment, recovery of the outstanding N20.73 billion debt, and the bank’s right to take over and sell the listed properties used as loan security.

With the ruling, Union Bank can take possession of the petroleum marketer’s assets and proceed with recovery steps under its statutory power of sale.

Source; The Nation News