Clarifying Supreme Court judgment on Innoson Vs GTBank

There have been a lot of misinterpretations on the press release published by Innoson Group on the decision of the Supreme Court. Therefore, we deem it fit through this medium to properly address and educate the public on the factual outcome of what happened at the Supreme Court on the litigation between Innoson and GTB.

On December 9, 2014, the Court of Appeal Enugu Division, delivered a ruling and ordered Guaranty Trust Bank Plc (GTB), to, within 14 days, pay a Judgment debt of about N6Billion to the deputy chief registrar of the court who shall pay same into an interest yielding account pending the determination of GTB’s appeal.

However,  GTBank, not satisfied with the ruling of the Court of Appeal, headed to the Supreme Court and filed a motion for stay of execution of the order.

The public should also note that the Judgment debt of N6Billion arose as a result of excess and unlawful charges which GTBank took from Innoson’s account domiciled with it.

On June 7, 2018, the Supreme Court struck out the application filed by GTBank on the stay of execution of the order of Court of Appeal. The N6Billion judgment debt, as at June 7, 2018, is over N14Billion.

Therefore as a result of the struck-out application, the Court of Appeal order that GTB should pay the judgment debt to the deputy chief registrar of the court within 14 days from the date of ruling (and which sum  the deputy chief registrar shall pay into an interest yielding account in a reputable bank) takes effect immediately.

We are therefore right to state “GTB shall pay Innoson N14Billion judgment debt into an interest-yielding account within 14 days”.

Furthermore, we are aware that GTBank, in an affidavit sworn to on December 12, 2014 at the Court of Appeal Enugu Division, after the Court ordered it to pay the judgment debt into an interest-yielding account stated in Paragraphs 5,6,7 that:

5. The compliance by the Appellant (GTB) with this order of this Honourable Court of 9thDecember, 2014 will adversely affect the smooth banking operation….. and deplete the depositors funds in the custody of the Appellant (GTB) as the sum ordered to be paid will necessarily have to be paid from the depositors funds.

6. That the order contained in the decision of this Honourable Court appealed against will impact negatively on the operation of the banking business of the Appellant (GTB). Compliance with the order will have adverse effect of depleting the trading funds of the Appellant with the resultant effect of high probability of attracting the sanctions of the Central Bank of Nigeria.

7. The banking operation of the Appellant (GTB) will seriously be adversely affected and its capital base eroded.

Therefore, GTB is advised within 14 days to obey the order of the Court of Appeal and pay the judgment debt to the deputy chief registrar of the Court within 14 days from the date of the Supreme Court decision. The bank should take heed of the advice given to it at the Supreme Court to go and negotiate with Innoson.

For emphasis, the judgment debt arising from the excess and unlawful charges which GTB took from Innoson’s account with it is, as at today, is over N14Billon.

Cornel Osigwe

Head Corporate Communications
Innoson Group


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