Home Headlines Car maker, Innoson to ‘take over GTB’ over N9bn debt

Car maker, Innoson to ‘take over GTB’ over N9bn debt

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Indigenous car manufacturer, Innoson Nigeria said it is taking over Guaranty Trust Bank following the dismissal of its appeal by the Supreme Court.

A statement by Cornel Osigwe, Head of Corporate Communications Innoson Group on Friday, read:

“The Chairman of Innoson Group, Chief Dr Innocent Chukwuma, OFR has through a Writ of FiFa taken over Guaranty Trust Bank PLC for and on behalf of Innoson Nigeria Ltd as a result of the Bank’s indebtedness to Innoson Nigeria Ltd.

“In a landmark decision on February 27th 2019, the Supreme Court of Nigeria dismissed GTB’s appeal – SC. 694/2014- against the judgment of Court of Appeal, Ibadan Division.

“The Court of Appeal, Ibadan division had in its decision of 6th February 2014 dismissed GTB’s appeal against the 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% interest, per annum, on the judgment sum until the final liquidation of the judgment debt.

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

“However in an ruling delivered by Honourable Olabode Rhodes-Vivour JSC on Wednesday, February 27th, 2019, the Lord Justices of the Supreme Court (JSC) dismissed GTB’s appeal and thus affirmed the concurrent judgment of both the Court of Appeal and 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% interest, per annum, on the judgment until the final liquidation of the judgment. The Judgment debt of N2.4B has an accrued interest as at today of about N6,717,909,849.96 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 ESQ, had 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.

“Having obtained the requisite leave, the Federal High Court issued the necessary process for levying execution – the Writ of Fifa.”

4 COMMENTS

  1. The judgement is wrong! An individual should not single-handedly shut a bank and not in the class of GTBank. This means that many banks have been violating CBN directives on loan handling and related matters. It beats my imagination that this matter was allowed to drag this long and GTB or the CBN cant see the handwriting in the wall to save the situation.
    Someday soon, others will arise and take-over banks like Zenith for all the trickery in the book

    • Innoson is not, and cannot take over GTB. He can only take some of the bank’s properties (assets) which is equal in value with the said amount owed. That’s, assuming GTB refuses to pay. 

  2. It’s good to have people who believe in their rights and are able to push for it. I give a huge kudos to nigeria’s judiciary and the relelntless efforts of the auto-maker in seeking and getting justice.
    It’s not about the bank. Perhaps with this judgement, other banks woud realise that customers are indeed, kings.

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