N8.8b debt: Innoson Motors shutdown seven GTB branches, targets head office

Innoson Motors has reportedly said it would move to the headquarters of Guaranty Trust Bank in Lagos to effect the judgement of courts that awarded it an estimated N8.8 billion.

The company’s spokesman Cornell Osigwe said this in an interview with Daily Trust on Saturday.

Already, Innoson’s agents had sealed seven branches of the bank in Awka and Enugu and plans to take further action by sealing the head office of the top flight bank.

Okigwe said in the interview with Daily Trust: “From next week, we shall move to GTB head office to enforce the judgement of courts.

“We will sell those properties to get our money back.”
GTB Plc has claimed that the judgement Innoson is executing was not against it but a customer of the bank and the Nigerian Customs and Excise Board.

In a statement, the bank’s secretary, Eric Obebeduo, said the garnishee order in question arose from a judgment of the Federal High Court, Ibadan, Oyo State.

The statement said: “It is important to state that the Judgment allegedly in issue is in respect of Garnishee Proceedings against the account of the Nigerian Customs Services Board domiciled with the Bank and not against the Bank as an entity.
“The Bank as a law-abiding corporate citizen is taking all necessary legal steps to address this situation and ensure that no illegal or fraudulent execution is carried out.”

However, Innoson Motors Nigeria Limited said its action, the sealing of seven GTB offices in Awka, Anambra State and Enugu in Enugu State followed a Supreme Court judgement that affirmed the earlier judgement by the High Court and the Court of Appeal in Ibadan.

Innoson in a statement on Friday claimed it obtained a court order to take control of GTB over indebtedness of N8.8 billion.
Osigwe said the company has obtained a writ of Fi fa from the Federal High Court sitting in Awka, Anambra State against GTB to take over the bank’s properties.

According to Osigwe, Innoson Chairman, Innocent Chukwuma, has been mandated by Federal High Court sitting in Awka, Anambra State to “take over” the bank after the Supreme Court dismissed GTB’s appeal against the judgement of the Court of Appeal in Ibadan.

He said: “The Chairman of Innoson Group, Chief Dr. Innocent Chukwuma, has through a Writ of Fi Fa taken over Guaranty Trust Bank Plc for and on behalf of Innoson Nigeria Limited as a result of the bank’s indebtedness to Innoson Nigeria Limited.
“In a landmark decision on February 27th, 2019, the Supreme Court of Nigeria had dismissed GTB’s appeal in a suit number SC.694/2014 — against the judgment of the Court of Appeal, Ibadan Division.

“The Court of Appeal, Ibadan Division had in its decision of 6th February, 2014 dismissed GTB’s appeal against thee Federal High Court, Ibadan Division.
“Thus, the Court of Appeal affirmed the judgment of the Federal High Court, Ibadan Division, which ordered GTB by way of Garnishee order absolute to pay N2.4 billion to Innoson with a 22 per cent interest per annum, on the judgments until the final liquidation of the debt.

“Rather than obey the judgment of the Court of Appeal, GTB approached the Supreme Court to challenge the Court of Appeal’s decision.”

The company also said that in a ruling delivered by the Supreme Court, Justice Olabode Rhodes-Vivour dismissed GTB’s appeal and affirmed the concurrent judgment of both the Court of Appeal and the Federal High Court, Ibadan Division.
According to the ruling, the court ordered GTB to pay N2.4 billion to Innoson with a 22 per cent interest per annum on the judgment until the final liquidation of the judgment.Osigwe added: “The Judgment Debt of N2.4 billion has accrued an interest of about N6,717,909,849.96 today, which results to about N8.8 billion.

“Based on the Supreme Court’s decision of 27th February, 2019, the counsel to Innoson, Prof. McCarthy Mbadugha, approached the Federal High Court, Awka Division for leave to enforce the judgment, having obtained Certificates of Judgment from the Ibadan Division of the Federal High court.”