The key facts and points behind Innoson and Gtbank's tussle

Drealup

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The key facts and points behind Innoson and Gtbank's tussle
Posted on: December 20, 2017, 12:48:28 PM
It's no more breaking that the owner of the first and only indigenous car manufacturing company in Nigeria, Innoson motors nig ltd is in the custody of the economic and financial crimes comission,EFCC.

Many are curious to know what led to this development. Below are the key facts obtained:

◆ Innoson Nigeria Ltd operates a Current Account with GTBank. With this, Innoson obtained, and had repaid same, a loan of N1.3billion from GTB Which was secured with a legal mortgage of its properties valued at more than N1.4billion.

◆ Innoson discovered that GTBank imposed excess and unlawful charges in its Current account. The Group Complained to GTBank on his discovery of access charges on his account.

◆ Both parties ( Innoson and GTBank ) agreed to invite an independent auditing firm that will be agreed by both parties, MULTI-WINGS Consulting Firm of Auditors was invited to properly audit Innoson Nigeria Ltd Current account No 0043753636 domiciled with Nnewi Branch of GTBank. The audit covers a period from March 2004 to Dec 2011. After the account was audited, it was discovered that GTBank has been illegally deducting excess bank charges on its overdraft facility to the Innoson accounting to seven hundred and Eighty-Six Million, Two Hundred and Five Thousand, Nine Hundred and Fifty-Five Naira, Ninety-Nine kobo ( N786,205,955.99).

◆ GTBank shocked at the audit report, replied in their letter to Innoson on 20th January 2012 that it will investigate the issue raised and will get back to Innoson on the Conclusion of its investigation.

◆ On September 2012, GTBank wrote to Innoson that from their personal audit report, the excess bank charges was Five Hundred and Fifty-Nine Million, three Hundred and Seventy-Two naira, Nine kobo ( N 559.3Million) and Innoson agreed and decided to accept payment of it.  Innoson also requested that the said agreed amount of N559.3million be paid with a 22% interest rate because Innoson had been repaying all his loan with GTBank at 22% interest rate.

◆  GTBank refused and said that the best they can repay excess and illegal deduction is at 7% interest rate .  As a result, in 2012, Innoson sued GTBank at Federal High Court Awka with Suit No: FHC/Awk/ Cs/2012. The Federal High Court, Awka delivered Judgement in favour of Innoson in excess of N4.7billion against GTBank. Delivering Judgement in suit no: FHC /Awk/ CS / 139/2012, the FHC awarded N4.7billion to Innoson Motors against GTBank.

The court also ordered GTBank to pay 22 % (percent ) interest on the Judgement debt until all the payment had been made to Innoson.

◆ In 2013, GTBank appealed against the judgement to the Court of Appeal, Enugu Division, appoxite appeal No: CA/ E/288/2013.  

The Court of Appeal, Enugu in a Considered ruling ordered GTBank to pay the Judgement debt of N6billion Inclusive of the accrued interest and any interest that would subsequently accrue thereon into an interest yielding account in the Name of the Chief Registrar of the Court.

In its various affidavits, particularly at the Court of Appeal in suit no: CA/ E/288/2013, GTBank deposed that if it pays the outstanding Judgement debt of N6billion, much less the N8.5billion, it could go bankrupt and be out of business.

◆ Nigerian Customs Service Auctioned Innoson goods. Innoson challenged the action Nigerian Customs Service for auctioning its goods at Federal High Court, Ibadan and on July 29, 2011, In a Garnishee Order Absolute, the Federal High Court sitting in Ibadan ordered GTBank to Pay Innoson #2,048,737,443,67 (#2billion) from Nigerian Customs account in GTBank.

◆ Rather than Comply with the Garnishee Order Absolute of the Court , GTBank on February 6, 2015 appealed the Judgement , but the Court of Appeal in Appeal no. CA/1/258/2011 affirmed the Judgement of the Federal High Court and ordered GTBank to pay the Judgement debt of #2,048,737,443.67 (#2.048billion) to Innoson . GTBank , instead appealed to the Supreme Court against the Court of Appeal's decision where GTBank claimed through a motion in suit no : Sc /694/2014, that the Court of Appeal Judgement in Ibadan (CA/ I/258/2011) was procured by suspicious means .

On May 12, 2017 , Supreme Court in its wisdom and rightly , dismissed that unfounded and exasperating claim of GTB against Innoson .

Meanwhile, on the arrest and detention of Innoson's Ceo, the EFFC has said that he was detained after failing to respond to their calls for him to appear before them. Innoson has since refuted the claim.



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