Union Bank Secures N20.7 Billion Judgment Against Oil Marketer
A Federal High Court sitting in Lagos has delivered a significant ruling, ordering a petroleum marketer, Kehinde Elliot Ogbor, and his company, Danium Energy Services Limited, to pay the sum of N20.7 billion to Union Bank Plc. The judgment, presided over by Justice Deinde Dipeolu, resolves a long-standing dispute over an outstanding loan facility.
Legal Battle Over Breached Settlement
The legal conflict originated from a Memorandum of Settlement dated March 6, 2018, and a subsequent Consent Judgment delivered on April 25, 2018. Union Bank, represented by its counsel, Adetunji Adeniyi-Adedoyin, approached the court after the defendants allegedly failed to adhere to the agreed repayment terms. The bank argued that this failure constituted a clear breach of contract.
In its suit marked FHC/L/CS/1905/2023, Union Bank sought the court's permission to take possession of and sell several prime properties that had been mortgaged by Ogbor and his company. The bank also requested the court to direct security agencies, including the Nigeria Police Force and the Nigeria Security and Civil Defence Corps (NSCDC), to assist in this process to satisfy the debt of N20,732,299,999.21.
Defendants' Counter-Claim Dismissed by Judge
In their defence, the defendants, through their lawyer, Ikenna Emeh, filed a joint counter-affidavit and counterclaim. They urged the court to dismiss Union Bank's suit, alleging that the original settlement and consent judgment were invalid due to fraud, misrepresentation, undue influence, and duress.
Furthermore, Danium Energy Services made substantial financial demands of its own, asking the court to compel Union Bank to pay:
- N42.4 billion for alleged excess bank charges and penalties.
- N25 billion in damages for conspiracy, fraud, and reputational injury.
- The release of all collateral securities and repayment of withheld funds.
After carefully considering arguments from both sides, Justice Dipeolu found the defendants' counterclaims to be without merit and dismissed them entirely.
Court Grants Bank Power to Sell Properties
Justice Dipeolu ruled in favour of Union Bank on all counts. The court declared that the bank's statutory power of sale had been activated by the defendants' persistent default on the loan. Consequently, the judge granted Union Bank leave to take exclusive possession of the listed properties and sell them to recover the colossal debt.
This judgment underscores the legal consequences of defaulting on loan agreements and reinforces the power of financial institutions to seek redress through the judicial system.
