Depositors Panic as GT Bank Violates Court Judgments

Depositors in GT Bank are worried over the likely consequential outcome of a Federal High Court ruling to the effect that the bank has violated a court judgment. NewsReport gathered

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On February 20, 2023, the court held that Guaranty Trust Bank was in violation of the consent judgment entered by the court on December 17, 2019 and proceeded to set aside the purported execution carried out by Guaranty Trust Bank Plc on 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, the Honourable 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 of the Court, was wrongful and done with the intention to undermine the proceedings before the Court.

The Court of Appeal, presided over by the Honourable Justices Daniel-Kalio, Sirajo, and Banjoko, had previously delivered judgment in favor of Stallion Nigeria against Guaranty Trust Bank Plc on February 24, 2022, and set aside the ruling of Honourable Justice Saidu in favor 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 held that the execution that was purportedly carried out on February 1, 2023, and subsequent steps by the Bank were not authorized by the Court.

The Court 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 favor of Stallion Nigeria.”

Recall that on February 1, 2023, Guaranty Trust Bank Plc, relying on the ex-parte order granted by Honourable Justice Saidu on December 2, 2019, which had expired, and the subsequent consent judgment, which GTB had breached and violated, tried to illegally enter one of Stallion’s properties in Victoria Island, Lagos.

Stallion Nigeria contended in its application, which was granted by the Court, that the preliminary KPMG forensic audit report established that GTB overcharged Stallion by N4,693,625,637.49 in fraudulent and illegal charges.GTB accepted this finding by the auditors.

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