Justice

A Federal high court sitting in Lagos has ordered a limited liability company, Fincon Engineering Nigeria Limited, and two of its directors Adesubomi Adesupo and Adelore Adebayo to pay the sum of N290 million being the amount of debt they are owing First Bank of Nigeria Limited.

The order of the court was as a result of an application filed before the court, by a Lagos lawyer, Barrister Ade Oyebanji , urging the court to issue a summons on the defendants asking the court to enter the suit for hearing under the undefended list and marking it accordingly.

The Presiding Judge Saliu Saidu acceded to the request of the bank consequently the writ of summons and the court order were served on the defendants.

The case of First bank limited was that on the 21st of May, Finco Engineering Nigeria Limited company applied for a contract finance facility from First Bank limited to assist the company to purchase /contract order of USD345,000 issued to the company by Ericsson Nigeria Limited, the bank granted the company co joined credit facilities in the sums of N42.3 million, N33. 9 and N187.6 million.

The company by letter of undertaking dated the 18th of June, 2014 did undertake to deposit a minimum of 30% of the cost of execution of the contracts as equity contribution before each draw down of the facility

Upon the company ‘s unremitting default and inability to liquidate its indebtedness the bank caused a demand letter to be served on the company,the said letter was duly received and acknowledged and expressly admitted its indebtedness via a letter dated 3rd December, 2015.but has always failed to make good its obligation in the contract facility.

As a result of the company’s inability to fulfill its obligation to the bank, the indebtedness of the company as at 2nd March, 2016.stood at N290m as interest continues to accrue.
The bank has taken various steps with view to ensuring that the company paid its debt but all efforts have proven abortive as the company has willfully refused to pay the debt.

Adesubomi Adesupo and Adelore Adebayo Ahmed guaranteed the loan facilities obtained by the company, consequently the bank claims jointly and severally against the defendants are for:

(a) N290m as at the 2nd of March,2016.

(b) Interest on the said sum from the date of judgement at the rate of 10% per annum till the full liquidation of the judgement debt.

In his judgement, the presiding judge Saliu Saidu, said based on the unchallenged evidence before the court and the letter of acknowledgement of indebtedness written by the defendants to the bank I hereby grant as follows :

N290m only being the sum due to the bank arising from the credit facilities granted to the defendant.

Interest on the said sum of N290m only from the date of judgement at the rate of 10% per annum till the full liquidation of the judgement debt.