Oct 16, 2020

Federal High Court Sets Aside N24 Billion Naira Order Against CBN


On Tuesday, 13th October 2020, the Federal High Court, delivered a ruling, setting aside the Garnishee Order Nisi made against the Central Bank of Nigeria in Suit No: FHC/ABJ/CS/563/2020 between Bendu Peter Services Nigeria Limited & Anor V. Guaranty Trust Bank Plc & Anor.

Bendu Peters Services Nigeria Limited, instituted a suit before the High Court of the Federal Capital Territory, Abuja, challenging the actions of the Guaranty Trust Bank in freezing, suspending and refusing to allow cash withdrawal from her account when requested.

On the 23rd of March 2020, the High Court delivered its judgment and amongst the declaratory reliefs and, consequential orders granted in favour of the Plaintiff, the court also awarded a judgment sum of N24,282,017,249.00 (Twenty-Four Billion, Two Hundred and Eighty-Two Million, Seventeen Thousand, Two Hundred and Forty-Nine Naira) against Guaranty Trust Bank.

In a bid to reap the fruits of the judgment gotten at the High Court, Bendu Peters Services Nigeria Limited, instituted garnishee proceedings at the Federal High Court, Abuja and sought for the immediate attachment of the sum belonging to Guaranty Trust Bank Plc in the custody of the Central Bank of Nigeria.

In compliance to the Garnishee Order Nisi, ordering the Central Bank of Nigeria to appear in court and to disclose by evidence, reasons why the Order Nisi should not be made absolute against it, in which circumstance, the counsel to the Central Bank of Nigeria, O. M. Atoyebi, SAN and other counsel in the matter now before the Federal High Court Abuja, filed all necessary processes alongside an objection, wherein they also sought the order of court to set aside the entire proceedings and on the part of the Bank in particular, counsel sought the order of court to set aside the Order Nisi made against the Bank.

 The court in considering the application filed before it, held that the failure of the Plaintiff now Judgment Creditor at the Federal High Court to disclose the pendency of an application for the stay of execution of the Judgment obtained from the High Court of the Federal Capital Territory, Abuja on the 23rd of March 2020, deprived the court of its jurisdiction to entertain the garnishee proceedings and on that rationale, the court vacated the Order Nisi made against the Central Bank of Nigeria and consequently dismissed the action in its entirety.

 

 

 


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