Federal High Court Ikoyi

By Akin Kuponiyi

A federal high court sitting in Lagos south-west Nigeria has ordered the immediate attachment of funds belonging to an Ibadan based company Derilar Enterprise Nigeria Limited to the tune of N198 million.
Also affected by the court’s order are, the managing Director and alter Ego of the company Chief Dele Ajayi and two directors of the company Mrs Adenike Ajayi and Mrs OMOLARA Ajayi also shareholders of the company.
The presiding Judge Lewis Allagoa also ordered AMCON to take interim possession of the two properties stated below used as collateral for the loan

1. Plot No. 378, Area A2 Wuse I District, FCT covered by a certificate of occupancy No. FCT/ABU/OY.57 registered as No. FC 22 on page 22 in volume 18 of the Land Registry Office at Abuja.

2. Property of Chief Dele Ajayi at Iwo Road, Ibadan, Oyo state covered by a Deed of Assignment registered as No. 8 on page 8 in volume 2576 of the Land Registry office at Ibadan.

The order of the court as a result of an application accompanied by an affidavit sworn to and filed before the court on behalf of Asset management corporation of Nigeria AMCON by a Lagos lawyer Barrister John Duru.
Barrister Duru avers that Derilar Enterprise company, is a company duly registered under the laws of Nigeria with its address at N5/871H Opposite Express Over-Head Bridge, Iwo Road Ibadan, Oyo State, the Company was a customer of Trans International Bank Plc (now Heritage Bank), On the 24th of October, 2000, upon application of the company a loan facility of N 40,000,000 (forty million naira), was granted to the company by Trans International Bank Plc (now Heritage Bank).
The purpose of the loan was to finance the execution of the contract awarded by the Osun State Government to the company “for the construction of ‘Type B’ New Secretariat Complex in Osogbo”
The tenor of the facility was for a ten (10) month – period and the following properties were used as collateral for the credit facility:

Plot No. 378, Area A2 Wuse I District, FCT covered by a certificate of occupancy No. FCT/ABU/OY.57 registered as No. FC 22 on page 22 in volume 18 of the Land Registry Office at Abuja.

Property of Chief Dele Ajayi at Iwo Road, Ibadan, Oyo state covered by a Deed of Assignment registered as No. 8 on page 8 in volume 2576 of the Land Registry office at Ibadan.
The Defendants having utilized the above-stated loan facility they obtained from the Bank, defaulted in repaying the same.
As a result of the defaults by the Defendants, the Bank wrote and sent out several letters demanding the Defendants liquidate their debt, however, they failed and/or neglected to do so.
As a result of the default, the loan facility became toxic and was subsequently acquired as Eligible Bank Asset (EBA) by Asset management corporation of Nigeria (AMCON)
by its statutory powers and functions.
By the purchase, AMCON is statutorily empowered to administer and recover the loan from the Defendants.

AMCON sent demand notices to the Defendants to repay their debts arising from the loan facility granted them
In the Defendants’ letters dated 4th July 2014 and 30th September 2014, addressed to Plaintiff, the Defendants acknowledged being indebted to Plaintiff and sought time to offset same.
However, after a series of meetings and negotiations with Plaintiff, Plaintiff restructured the loan with the Defendants to the tune of N60,000,000.00 (Sixty Million Naira) as a full and final settlement of the debts.

By the terms of the agreement, the Plaintiff made it clear to the Defendants that if they defaulted in paying the agreed N60,000,000.00 (Sixty
Million Naira) within the stipulated period being 30th September 2014, Plaintiff reserved the right to revoke the restructured payment proposal and demand for the entire outstanding sum of N198,061,019.61 (One Hundred and ninety-eight million, Sixty One Thousand nineteen naira and Sixty-one kobo).

However, the Defendants failed and/or neglected to repay the debts despite the concessions from Plaintiff.
The default of the Defendants has caused serious financial and economic consequences on the activities of the Bank and its customers, who were the actual owners of the money.

That the current debts of the Defendants amount to the sum of N198,061,019.61 (One Hundred and Ninety Eighty Million, Sixty One Thousand, Nineteen Naira, sixty-one Kobo).
Plaintiff is desirous of recovering the above-stated sum and also desirous of taking possession of all assets of the Defendants with the assistance of the Police, Sheriffs and Bailiffs of this Court pending the determination of the substantive suit.

The Plaintiff avers that noting the protracted default of the Defendants to liquidate their indebtedness, it has become manifest that except this Honourable Court intervenes in this case; the Defendants will tarry in their default therefore, it is needful for the court to restrain the Defendants as well as listed banks from removing, deducting, transferring or howsoever tampering with any funds, shares or instruments standing to the credit of the Derilar company

Unless this court grants this application, there is a real and imminent danger of the Defendants removing from the jurisdiction or dissipating the assets thereby making the recovery process of the Plaintiff frustrated.

WHEREOF the Plaintiff claims against the Defendants are as follows: a
An order of this Honourable directing the defendants to pay the sum of N198,061,019.61 (One Hundred and ninety-eight Billion, Sixty One Million, Nineteen Thousand naira and Sixty-one kobo) being their outstanding indebtedness to the Plaintiff.

An order of this Honourable Court directing the Defendants to pay post judgement interest at the rate of 15% per annum from the date of judgement, till the final liquidation of the entire sum.

The cost of this action is the sum of N5,000,000.00(Five Million Naira).
The presiding Judge, Justice Lewis
Allagoa, after hearing the submission of David Idang counsel for the plaintiff’s move in terms of the motion paper, the court careful consideration of the application and submission of the counsel, It is hereby ordered as follows:
That the order of this court granting leave to the plaintiff to take interim possession of the properties of the defendants at :
Plot No. 378, Area A2 Wuse I District, FCT covered by a certificate of occupancy No. FCT/ABU/OY.57 registered as No. FC 22 on page 22 in volume 18 of the Land Registry Office at Abuja.

Property of Chief Dele Ajayi at Iwo Road, Ibadan, Oyo state covered by a Deed of Assignment registered as No. 8 on page 8 in volume 2576 of the Land Registry office at Ibadan which was transferred via a deed of a legal mortgage by the defendants to Enterprise bank and Intercontinental bank which AMCON purchase from the bank.
Any other landed, movable, immovable, tangible, intangible, traceable assets within Nigeria, whenever found or situated within Nigeria pending the hearing and determination of the substantive suit.
An interim order is granted mandating all the 27 banks and other financial institutions to disclose detailed banking, financial, and commercial information of the defendants within 7 days of service of the order on them.
An order is granted freezing and attaching the various bank accounts of the defendants to the tune of N198,061,019.61 domicile in 27 banks listed before the court. pending the determination of the substantive suit.