Florence Owolabi Enterprises Ltd. V. Wema Bank Plc (2011)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

UWANI M ABBA AJI, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the interlocutory ruling of Hon. Justice J.O. Adeyeye of the High Court of Justice, Ado-Ekiti Judicial Division of Ekiti State delivered on the 22nd October, 2009 dismissing the application of the Appellant for an interlocutory injunction against the Respondent.

The facts available on record is that the Appellant is a valued customer of the Respondent’s Bank operating three different accounts with the Respondent at its branch in Ado-Ekiti, Ekiti State.

Credit facilities were granted to the Appellant by the Respondent which was secured by the building properties of the Appellant.

The Appellant had been operating the accounts without any abandonment as the Appellant had made a payment of N10 Million into the accounts, out of which the Respondent allowed the Appellant a withdrawal of N3 Million to stay and recoup its dwindling business.

By its solicitor’s letter of 16th February, 2009 the Respondent called in the facility and threatened to dispose of the securities pledged as collateral for the facility by the Appellant alleging a total amount of N132, 331, 254:04k as owed and vehemently disputed by the Appellant as being unascertained and therefore incorrect and overblown, in that, in one of the accounts, the Appellant was falsely debited with a sum of N5 Million Naira instead of N5, 000:00.

With the persistent threat to sell the pledged securities, the Appellant instituted this action by its Writ of Summons dated 2nd March, 2009, claiming the following declaratory and injunctive reliefs:-

A Declaration that by the accounts being claimed on each of the accounts of the plaintiff at Ado-Ekiti branch of the Defendant as contained in the Defendant’s solicitor’s letter of 1st/2/09, the Defendant has overcharged the said accounts with interests, over bloated and unauthorized management fees consequently they are not the true and correct statement of account of the plaintiff.

A Declaration that in the management of accounts of the plaintiff, the Defendant had acted in breach and in violation of Guidelines and Regulations of the Central Bank of Nigeria.

An Order permitting the plaintiff’s auditors to look into the books of account of the plaintiff with the Defendant for the purpose of ascertaining for the true and correct statement of all transactions, charges, credits, debits and interests on the account of the plaintiff.

Perpetual Injunction restraining the Defendant, either by itself or its agents, servants or assigns from dealing with in whatever manner the mortgaged properties or collateral of the Plaintiff.

The Appellant on the 1st/4/2009 filed a motion on notice seeking inter alia for the following injunctive reliefs:-

1. An Order of interlocutory injunction restraining the Defendants/Respondents either by itself, its agent, servant or assign from selling or auctioning either by private or public treaty or by dealing with, in whatever manner the mortgaged properties of the plaintiff/Applicant pending the final determination of the substantive suit.

2. An Order of interlocutory injunction restraining the Defendant/Respondent either by itself, agents, servants or assigns from charging any further interest on the accounts of the Plaintiff/Applicant pending the final determination of the substantive suit.