News
Polaris Bank Reacts as the Court Issues a Garnishee Order.
Polaris Bank reacts as the court issues a garnishee order.
Polaris Bank reacts as the court issues a garnishee order.
According to reports, a garnishee order directing the CBN to freeze Polaris Bank’s account was approved by the court.
Polaris Bank on Saturday reacted to media reports that an Ondo state high court had granted a garnishee order directing the Central Bank of Nigeria (CBN) to freeze its account.
The bank stated in a press release that the court order was to “set aside the contentious judgment sum until the conclusion of the hearing in the case.”
Reports said Friday that an Ondo State High Court in Akure, the state capital, granted a garnishee order directing the Central Bank of Nigeria to freeze the account of Polaris Bank to the extent of a judgment debt of over N2 billion.
The bank was said to have owed the Ondo State government a sum of N2.2 billion.
Punch newspaper reported that the court gave the order following an application moved by the Attorney General and Commissioner for Justice in Ondo State, Charles Titiloye.
The commissioner applied for the “garnishee order nisi” in suit No. AK/75/2017, attaching all the sums of indebtedness of Polaris Bank to the Ondo State Government, the report said.
A garnishee order is one of the options open to a judgment creditor to enforce a judgment that has been made in its favor.
Reaction
In its reaction Saturday, Polaris Bank claimed that it has yet to be served the garnishee order as required by law relating to garnishee proceedings.
“We are aware of the matter, and our solicitor has filed necessary processes to set aside the garnishee order,” the bank said.
“The matter is on appeal, and an application for a stay of execution is pending at the Court of Appeals.” Thus, the garnishee order ought not to have been obtained because of the pending appeal and motion for stay.
“Above all, the effect of the order is not to freeze the Bank’s account with the CBN, as some media outlets incorrectly reported, but to set aside the contentious judgment sum until the conclusion of the case’s hearing.”