N32bn debt: Innoson seeks court order restraining GTB from name change

By MOSES AKAIGWE

Innoson Nigeria Limited, one of the member companies of IVM Innoson Group, is seeking the order of the Federal High Court in Enugu to restrain GTBank from changing its status to a private limited liability company until it has fully paid a judgment debt of N32 billion against it.

Innoson disclosed in a statement that it had to revert to legal action following the discovery that while it waited patiently for GTB to come up with a payment plan for the judgment debt it secured at the Supreme Court, the bank resorted to the smart move of changing its status .

The statement issued by the Group Head of Corporate Communications, Cornel Osigwe, stated, In a bid to escape payment, GTB resorted to a scheme of de-registering itself as a public limited liability company and re-registering itself as a private limited liability company and a financial holding company as well.”

In the suit, Innoson Nigeria Ltd is specifically seeking the following order of perpetual injunctions against GTBank and others:

{A) restraining the 4th Defendant (Corporate Affairs Commission) from deregistering the 1st Defendant (GTB) as a public limited liability company and or re-registering the 1st Defendant (GTB) as a private limited liability until it-GTB- pays the UC outstanding judgment debt of N32, 875, 204, 984.38k arising from Suit Nos: FHC/L/CS/603/2006 and No. FHC/AWK/CS/139/2012 respectively affirmed by the appellate courts in appeal Nos. CA/1/258/2011, SC.694/2014 and CA /E/288/2013 to Innoson Nig Ltd;

“(B) an order of perpetual injunction restraining the 4th Defendant (Corporate Affairs Commission) from registering or re-registering the 1st Defendant (GTB) as a holding or financial holding company whether as a public or private limited liability company until it- the 1st Defendant(GTB) -pays Innoson Nigeria Ltd the outstanding total judgment debt of N32, 875, 204, 984.38k (Thirty two Billion, Eight Hundred and seventy Five Million, Two Hundred and four thousand, Nine Hundred and Eight Four Naira, Thirty Eight kobo) arising from suit Nos. FHC/L/CS/603/2006 and FHC/AWk/CS/139/2012 respectively affirm by the appellate courts in Appeal Nos. CA/1/258/2011, SC.694/2014 and CA/E/288/2013:

“(C) An order cancelling the 1st Defendants (GTBs) special  resolution and or any other of its resolution that it should be deregistered as a public limited liability company and or be re-registered as a private limited liability company and or a holding company until it -the 1st “Defendant (GTB)- pays Innoson Nig Ltd the total outstanding judgment debt of  N32, 875, 204, 984.38k (Thirty two Billion, Eight Hundred and seventy Five Million, Two Hundred and four thousand, Nine Hundred and Eight Four Naira, Thirty Eight kobo) arising from suit Nos. FHC/L/CS/603/2006 and FHC/AWk/CS/139/2012 respectively affirmed by the appellate courts in Appeal Nos. CA/1/258/2011, SC.694/2014 and CA/E/288/2013:

“(D) An order setting aside the 3rd Defendants (Security and Exchange Commission) No -objection to 1st Defendants proposal to be re-registered as a private limited liability company and as a holding or a holding financial company:

(E)  An order setting aside the 2nd Defendants approval -in- principal granted to the 1st Defendant to operate as a holding or a holding financial company.

(F) an order of perpetual injunction restraining the 2nd Defendant from granting the 1st Defendant a financial holding company license and or a final approval to operate or carry on business as a financial holding company whether in its present name or as a private limited liability company until it, the 1st Defendant pays the Plaintiff the total outstanding judgement debt of N32, 875, 204, 984. 38k (Thirty Two Billion, Eight Hundred and Seventy-Five Million, Two Hundred and Four Thousand, Nine Hundred and Eighty-Four Naira, Thirty-Eight Kobo) arising from suit Nos. FHC/L/CS/603/2006 and FHC/AWK/CS/139/2012 respectively affirmed by the appellate courts in Appeal Nos. CA/1/258/2011, SC.694/2014, and CA/E/288/2013.v”

Osigwe disclosed that the Federal High Court in Awka had on March 27, 2019, pursuant to Supreme Court dismissing GTBs appeal, granted leave to Innoson Nigeria Ltd to enforce and execute the judgment and Garnishee Order Absolute made by a High Court in Ibadan on May 18, 2010 and July 29, 2011, respectively.

Both orders were concurrently affirmed by the Court of Appeal in the judgment of 6th February 2014 and by the Supreme Court in its judgment of 27th February 2019.

“Whilst refusing GTBs application and staying further proceedings the court further held that the order it made on March 27th, 2019 in favor of Innoson Nigeria Ltd granting it leave to enforce the judgment and issue processes of execution of the judgment are valid; also that all the steps taken to levy executions in pursuance of that order are still valid and are not vacated; whilst all the prayers by GTB in its motion of 1st April 2019 are not granted.

“GTB however rushed back to the Supreme Court and applied for an order setting aside the Supreme Courts judgement dismissing its appeal against the above judgement. However, the Supreme Court struck out the motion on Tuesday, November 3rd, 2020.” (Daily Sun)