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Court Orders Seizure of Sterling Bank’s Property over N70m Debt

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IMAGE: Sterling Bank logo »



Story:  Ernest Chinwo

Officials of the Rivers State High Court have shut down the Rumuola, Port Harcourt Branch of Sterling Bank Plc and confiscated the bank’s computers and different electronic gadgets over its failure to honour a garnishee order instructing it to pay the sum of N70.7 million to Kal-Vegas Kapuchino Limited.

Justice Joy Akpughunum of the Rivers State High Court had on February 12, 2013 issued a garnishee order in favour of Kal-Vegas Kapuchino in Suit No. PHC/2491/2012 after listening to arguments from counsel to Kal-Vegas Kapuchino, the claimant/judgment and creditor/garnishor,  C.I. Georgewill and the lawyer to Sterling Bank, Plc, O.A. Nwachukwu.

The judge entered a garnishee order against Sterling Bank in the sum of N70.7 million which its client, Jameon Nig Limited, owed Kal-Vegas Kapuchino.

According to Akpughunum, the garnishee order was “to satisfy the judgment debt owed the judgment creditor pursuant to Section 86 Sherriff and Civil Process Act.

The garnishee order, titled: “Order Absolute,” signed by Akpughunum, further stated: “It is further ordered that the garnishee is hereby ordered to pay forthwith to the garnishor/Judgment Creditor, the sum of 70, 000, 000.00 (seventy million and seventy hundred thousand naira) in satisfaction of the judgment debt, and costs of N30, 000.00 awarded in favour of the claimant/garnishor on the 27/4/2012 in Suit No. PHC/517/12.”

Addressing journalists in Port Harcourt at the premises of Rumola Branch of Sterling Bank Plc, one of the counsels to Ka-Vegas Kapuchino, Mr. Elijah Udoh, said the claimant decided to approach the court for a fresh writ of execution following the failure of Sterling Bank to honour the garnishee order given by Akughunum in Suit No. PHC/517/12 on April 27, 2012.

He said: “We are here to carry out an order from the Rivers State High Court on this bank, Sterling Bank, Rumuola for failure to obey a court. So, we are shutting down the entire operations. As you can see, nothing is happening here, the whole place is shut down. Their goods and other materials are being taken to the court”.

He said his client was disappointed that the bank failed to obey the court order in the payment of the judgment debt.

According to Udo, “A bank is supposed to be socially responsible and when an institution like a bank defaults on obedience to a court order, then it sends the wrong signal to the public. The bank was ordered to pay forthwith, that is immediately, to a judgment creditor a specified amount and they (bank) have defaulted to pay the amount.

“So, the court has ordered this writ of execution be approved that whatever belongs to the bank can now be used to pay off the judgment sum. The judgment was given in April 2012.”
Officials of the bank declined to speak to journalists and referred all enquiries to the bank’s head office.
However, attempts to speak to officials at its Lagos head office were abortive as they refused to pick calls from THISDAY.

Article Credit: ThisDay newspaper

Updated 5 Years ago

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Tags:     Sterling Bank plc     Kal-Vegas Kapuchino Limited     Rivers State High Court     C.I. Georgewill     Justice Joy Akpughunum