A Lagos High Court sitting Ikeja has summoned Union Bank Plc to explain contentious debt of N119, 773, 826 between it and a multinational company, Ravih Abdul and Co. Limited ahead of the bank’s planned acquisition of minority shareholders by Titan Trust Bank Limited.
Although no date has been fixed for definite hearing, in a writ, suit No: ADR/2520/2023, the court has ordered the bank to file its defence within 42 days.
Ravih Abdul and its managing director, Mr. Adekunle Abdul had approached the court, asking it to compel Union Bank to pay him N119, 773, 826 being the total accumulated indebtedness to the company.
The company and its managing director said the bank’s indebtedness dated between November 1994 and December 2022 “being arrears of accumulated interest.”
In the suit dated May 26, Ravih’s managing director said the bank, which having allegedly received 5, 240 pounds sterling as payment of required fees to process letter of credit, had refused to use the money for the purpose of the letter of credit,”
He said: “Although the defendant had claimed paying the money on the letter of credit, it had failed to make available to the claimants all the accrued interests generated on the money between November 1993 when the letter of credit expired and September 1994 the period they kept the money in their account without payment to the beneficiary which had amounted to 1, 008.77 pounds sterling that should have accrued to the claimants in their account.
“The defendant has refused till date to explain what it did with the interests that were accumulated on the money they paid to the defendant after a long period that the money was lodged with them when they did not pay the money within three months specified in the letter of credit after revalidation which the money was not used for the purpose it was intended.
“The claimants aver that pursuant to the above, they had earlier forwarded letters of demand to the defendant for the payment of the accumulated outstanding due to them and copies of the letters dated September 26, 2022, November 4, 2022 and January 11, 2023 respectively.
“That the defendant had not denied receiving the sum of 5, 240.26 pounds sterling as payment of the required fees for the processing of letters of credit in their favour, more so, it had not denied delaying the payment to the beneficiary until 1994.
However, Ravih Abdul and its managing director “are claiming 220, 838.74 pounds sterling about #119, 773, 826, being total accumulated indebtedness from the defendant to the claimants from arrears of accumulated interests on the claimants’ account with the defendant from November 1994 to December 2022.”
Meanwhile, the court has ordered Union Bank Plc, to file its defence within 42 days to the alleged 3119, 773, 826 debt. It said: “You are hereby commanded that within 42 days after the service of this writ on you, inclusive of such service, you do cause an appearance.”