A Federal High Court, Ikoyi, Lagos, presided over by Justice Yelim Bogoro, has ordered the United Bank for Africa (UBA) to pay a total sum of N3.5 million damages and tender unreserved public apology for unlawfully placing a Post-No-Debit (PND) on the account of one of its customers, Ceddi Services Limited
Justice Bogoro who decried the unlawful act of the UBA said that such action amounted to a flagrant breach of fundamental rights to fair hearing and property ownership of the company.
The judge took the above decisions in his judgment on the suit designated FHC/L/CS/1461/2020, filed by the company against UBA Plc and three others.
Others listed as defendants alongside UBA Plc are the Inspector-General of Police, Deputy Inspector-general Of Police (Force Intelligence Bureau, Police Force Headquarters, Abuja) and Nigeria Police Force, who were joined in the suit by the order of Justice Peter Lifu, on November 1, 2021.
Ceddi Services Limited, through its legal team, led by Oladapo Akinosun (SAN), had approached the court for the above-granted orders and many others, through a fundamental rights enforcement suit, which they said was pursuant to Section 42 of the Companies And Allied Matters Act 2020; Section 36 and 44 of the Constitution of the Federal Republic of Nigeria 1999 (As Amended) and Article 7 and 14 of the African Charter On Human And Peoples Rights (Ratification And Enforcement) Act Cap. A9, LFN, 2004.
In its affidavit in support of the motion deposed to by its Manager, Administration and Property Services, Mrs Ngozi Agorua, the firm told the court that it has been banking with UBA Plc since February 16, 1998, with Account name: Ceddi Services Limited; Account Number: 100*****9; Branch: 9, Wharf Road, Kariko House, Apapa, Lagos.
The deponent averred that on August 27, 2020, at about 10:00 am, her colleague, Mr Godwin Abuede was present at the bank’s branch office at 9, Wharf Road, Kariko House, Apapa, Lagos, to present cheques for personal income tax in favour of the Lagos State Internal Revenue Service.
Mrs Ngozi Agorua informed the court that surprisingly, when Mr Godwin Abuede got to the bank, the attendant refused to honour the cheque presented without any explanation and that she decided to check the internet banking portal to ascertain the company’s account status.
Upon viewing the company’s portal, Mrs Ngozi Agorua revealed that she discovered that the account status was tagged: ‘Debit Frozen Account’, and that she immediately reached out to the bank vide code call, but there was no response.
Mrs Ngozi Agorua contended that some other clients have reached out to her expressing concerns that the monies remitted into the firm’s account have not been disbursed for payment of remuneration to employees.
The deponent insisted that until the suit was filed, the firm had been unable to access the funds in its account and had been restricted from carrying out any transaction with the account, adding that the breach of the firm’s fundamental rights over its assets with the bank has been subsisting since August 27, 2020.
Mrs Ngozi Agorua posited that some clients have threatened to institute legal actions against the company if the funds contained in its account are not returned.
But UBA Plc, in its counter-affidavit deposed to by Kenna Enebe, from its Legal department, averred that sometime in August 2020, the bank received a letter dated August 14, 2020, from the Nigeria Police informing the bank of an investigation into the activities of the company and instructing the bank to place the company’s account on ‘Post No Debit’ based on a court order and to stop the outflow of money from the said account among other instructions.
He also averred that the bank, in compliance with the Court Order, placed a Post No Debit on the firm’s account and restricted the outflow of money from the account.
Kenna Enebe further averred that contrary to some depositions in the firm’s affidavit in support of the originating summons, the bank did not act arbitrarily against the company, nor did it infringe on its fundamental human right.
The lawyer also averred that his bank has not breached any of the rights of the firm, but only acted in accordance with a valid order lawfully issued by a court of law and presented by a competent authority in line with their primary functions under the law, with an addition that the funds standing to the credit of the firm are still available to the company subject to the court’s order.
While stating that UBA Plc is not indebted to the applicant in any way or liable to it for any damages whatsoever and has not acted unlawfully, Kenna Enebe declared that the bank is mandated by law to comply with all valid orders of court inclusive of the banker’s order dated August 17, 2020, and the bank is not in a position to question the validity of such order.
Kenna Enebe added that the firm is fully aware of the existence of the banker’s order but failed to apply to that court to challenge the validity of the said order or even apply to set it aside or discharge the same.
Kenna Enebe averred that the bank is duty-bound to obey court orders served on it, and this absolves the bank from any damages that may arise out of the obedience to that court order.
Kenna Enebe said that the firm does not have a reasonable cause of action against the bank to make out a claim of violation of its fundamental rights.
In his judgment, Justice Bogoro held that UBA Plc acted illegally in PND the company’s account with a repealed banker order
