A Federal high court sitting in Lagos south west Nigeria yesterday entered judgement as per terms of settlement between Sterling bank Plc and Dr. Andy Nnamdi Uba filed before the court as judgement of the court. This is in a debt recovery suit of N549,618,527.76 filed against Dr.Andy Uba and his company Linc Linc Nigeria Limited.
In an affidavit accompanied by the motion sworn to by a legal practitioner Adeleresin Philips-Adeleye and filed before the court by Dr Oladapo Olanipekun SAN on behalf of Sterling bank Plc for service on Mahmud Abubakar Magaji SAN, counsel representing Dr. Andy Uba and his company Linc Nigeria Limited,It was stated that,by a writ of Summons dated 17 June 2020, Sterling bank seeks the following reliefs against Dr.Andy Uba and his company.
The sum of N549,618,527.76, being the amount due and outstanding in respect of the Petroleum Product Finance/PPPRA Term Loan Facility of 17 October, 2018, advanced to Linc company and personally guaranteed by Dr.Andy Nnamdi Uba.
Interest on the said sum of N549,618,527.76 at the rate of 27% per annum from 17 June, 2020 until judgment is delivered and at the same rate thereafter until final liquidation.
Cost of this legal action assessed at N40million.
Sterling bank Plc applied for and obtained interim orders restraining the defendants wether by themselves, agents representatives,officers, servants,proxies assigns, trustees,or any other persons howsoever described,acting directly or indirectly, through them,from demanding,accessing, other person(s)them,the from howsoever officers of the, defendants demanding, ,accessing, utilizing or making any withdrawal on the defendants’ account(s) in the 22 banks cited
banks on the plaintiff’s Motion paper dated and filed on 17 June2020(cited banks), and or any other financial institution in such a manner that the account(s) may be depleted below the credit balance of N549,618,527.76 pending the hearing and determination of the plaintiff’s Motion on Notice dated 17 June 2020;
Directing the said 22 cited banks to sequestrate and or ring fence any cash, bonds, deposits, all forms of negotiable instruments or chose(s) in action due to or standing to the credit of the defendants up to the sum/value of N549,618,527.76 pending the hearing and determination of the plaintiff’s Motion on Notice dated 17 June 2020;
Directing the said 22 cited banks to pay any sums of money standing to the credit of the defendants up to the sum of N549,618,527.76 into an interest yielding account in the name of the Chief Registrar, for same to be held in trust pending the hearing and determination of the plaintiff’s Motion on Notice dated 17 June 2020.
However,for the purpose of sustaining good business relationship, parties herein have now agreed to the amicable settlement of the plaintiff’s claims in Suit No.: FHC/L/CS/715/2020-Sterling Bank Plc v Linc Nigeria Limited & Dr.Andy Nnamdi Uba upon the terms hereunder set out.
Now it is hereby agreed as follows:
That the Defendants indebtedness to the bank is in the sum of
The defendants agree to submit to the bank, Promissory Notes Numbers FGN/PN/OMC/5.3/2020/25D and FGN/PN/OMC/5.3/2020/25F for the respectlys values of N419, 510,091.00
and N340, 279, 249.00.
Promissory Notes Numbers: FGN/PN/OMC/5.3/2020/250 and FGN/PN/OMC/S.3/2020/25F, shall be dematerialised and discounted by the bank on behalf of the company.
The defendants agree unconditionally to take any step/action that may be necessary or incidental to the dematerialization of the said Promissory Notes Numbers: FGN/PN/OMC/S.3/2020/25D and FGN/PN/OMC/S.3/2020/25F.
The proceeds of Promissory Notes Numbers: FGN/PN/OMC/S.3/2020/25D and FGN/PN/OMC/S.3/2020/25F shall be paid into any of the company’s account numbers: 00244044308 and 0069951458, held with Sterling Bank Plc- the plaintiff.
The sum of N549,618,527.76, shall be deducted from the net proceeds of the dematerialization and discounting of Promissory Notes Numbers: FGN/PN/OMC/S.3/2020/25D and FGN/PN/OMC/S.3/2020/25F, and shall be used to fully liquidate the defendants’ indebtedness.
The deduction of the sum of N549,618,527.76 from any of the company account numbers: 00244044308
and 0069951458 shall constitute a full and final settlement of all the claims in this suit.
Any sums in excess of N549,618,527.76, shall stand to the credit of the Linc company.
Upon the deduction and or the receipt of the full sum of N549,618,527,76 the bank shall immediately and unconditionally issue the defendants a letter discharging them from their debt.
The Linc Nigeria company shall be absolved of all duties/obligations/liabilities under the Petroleum Product Finance/PPPRA Term Loan Facility of 17 October 2018. Dr.Andy Nnamdi Uba shall also be fully discharged of all obligations and or liabilities as the Linc company guarantor.
Further to the paragraph above, the bank shall cease to hold all security rights in respect of the defendants’ duties/obligations/liabilities under the Product Finance/PPPRA Term Loan Facility of 17 October 2018. In particular, the plaintiff shall lift/release all encumbrances in respect of the property situate at Plot 772, Mamman Nasir Street, Asokoro, Abuja.
The adoption of the Terms of Settlement shall constitute a discharge/vacation of the orders of injunction granted by the court on 2 July 2020.
The parties agree that upon the execution of these Terms of Settlement, the Terms of Settlement shall be filed at the Registry of this court and shall be adopted by the parties as the judgment of this court in this cause.
The parties agree that upon the adoption of these Terms of Settlement and entering of same as the judgment of this honourable court in this suit,they shall be bound thereby, and that the judgment shall be enforceable by/against the parties by due process of law.
The parties shall each bear their respective costs in this matter.
When the matter was mentioned today,Barrister Oladimeji. Adewole, from the chamber of Dr. Dapo Olanipekun SAN,told the court that the terms of settlement filed before the court,is meant for adoption,and there is no objection or opposition.
Thereafter,the presiding Judge, Lewis Allagoa entered the terms of judgment as the judgement of the court.