Guaranty Trust Bank Plc. v. Pico Projects Services Limited (2023)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

JAMILU YAMMAMA TUKUR, JCA (Delivering the leading judgment)

This is an appeal against judgment of the High Court of the Federal Capital Territory, Abuja, in case No. CV/316/2021 delivered on 4th April, 2022 by Honourable Justice J. Enobie Obanor against the appellant.

The material facts of the case which culminated in this appeal revolve around a loan facility that was granted to the respondent by the appellant. During the course of the loan repayment in 2020 after the onset of the covid-19 pandemic, the appellant via email on 10th April, 2020 informed the respondent that the respondent was granted a grace or holiday period of 90 days within which it would not be required to pay interest on the loan.

The respondent saw this as meaning there would be no interest payable for the 90 days whereas the appellant insisted that what it meant was that the payment was deferred.

The appellant then went on to deduct the sum of N175,138.25k (One hundred and seventy-five thousand, one Hundred and thirty-eight naira. Twenty-five kobo) being the interest payable for the 90 days in question and the respondent acting on the belief that such deduction constituted a breach of the agreement between the parties instituted an action before the lower court vide writ of summons dated 8th of February, 2021 accompanied with all requisite processes via which it claimed the following:

a. A declaration that the debit of the sum of N175,138.25K by the defendant as interest on loan for the months of April, May and June, 2020, made from the claimants account is unlawful having regard to the defendants email of 10th April, 2020 to the claimant.

b. A declaration that the defendant by its email of 10th April, 2020 has varied the terms of the contract between the parties.

c. A declaration that the defendant is estopped from charging the claimant for interest for the grace period having waived it by its email of 10th April, 2020 to the claimant.

d. An order compelling the defendant to revert the sum of N175,138,25K it wrongly debited from the claimants account on 22nd July, 2020.

e. 21 percent interest on the sum from the date of its wrongful deduction until it is fully liquidated.

f. The sum of N700,000.00 only, being the cost of this litigation paid to its solicitor, Eastwood Solicitors, by the claimant to prosecute this suite.

g. The sum of N10,000,000.00 damages.

h. 10 percent post-judgment interest until same is fully liquidated.

In response to the respondents claim, the appellant filed a statement of defense dated 25th March, 2021 whereby it denied the respondents claims and averred that the suspension of payment it granted does not amount to a waiver of its right to the accrued interest on the loan for the period, rather it was a gesture aimed at allowing the respondent access to its funds during the period of the lockdown by delaying, placing on hold and/or suspending the repayment of the loan by 90 days instead of the usual monthly deductions.