TheCable

The federal high court on Monday held that Guaranty Trust Bank  (GTB) was in violation of the consent judgment entered by the court on December 17, 2019.

The court proceeded to set aside the purported execution carried out by the bank February 1, 2023.

Ruling on an application filed by the Law Firms of Kanu Agabi & Associates, Wahab Shittu SAN and Bonajo Badejo & Co., on behalf of Stallion, Justice Allagoa of the Lagos division of the court 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 judgment, was wrongful and done with the intention to undermine the proceedings.

The court of appeal presided over by justices Daniel-Kalio, Sirajo and Banjoko, had previously delivered judgment in favour of Stallion Nigeria against GTB on February 24, 2022 and set aside the ruling of Saidu in favour of GTB.

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

The court also held that it did not authorise the execution and subsequent steps by the bank.

It proceeded to 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.”

The bank had on February 1, relying on the ex-parte order granted by Saidu on December 2, 2019, which had expired, and the subsequent consent judgment, which GTB had breached, tried to enter one of Stallion’s properties in Victoria Island, Lagos.

Stallion Nigeria, in its application granted by the court, had contended that the preliminary KPMG forensic audit report had established that GTB overcharged Stallion N4,693,625,637.49. GTB accepted the finding by the auditors.

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