INNOSON TO GTB: You must pay N8.7billion Supreme Court judgment

The only way Guarantee Trust Bank (GTB) can free itself and regain customer confidence in Nigeria is for it to pay Innoson Nigeria Limited the total sum of N8.7 billion being judgment debt it owe the company as pronounced by the Supreme Court.

The management of Innoson Nigeria Limited stated this on Sunday through a statement signed by Cornel Osigwe, its Head of Corporate Communications and made available to Daily Times.

The company said, without full payment of the judgment debt, all efforts of the bank to use intimidation and other means to stop it from executing the court order would be in vain, adding that its banking operation will be seriously and adversely affected while the bank’s capital base would be eroded beyond redemption.

In the statement, Osigwe said, “The bid by GTB stop Innoson from taking it over nosedived last week Friday, April 7th, 2019 as the Federal High Court sitting in Ibadan refused to hear or grants it an injunction to restrain Innoson from continuing to levy execution against it; the court also refused to stay execution.

“Despite the decision of the Supreme Court on February 27th 2019 dismissing the appeal by Guaranty Trust Bank (GTB) and affirming thereby the concurrent judgment of Court of Appeal, Ibadan division and Federal High Court Ibadan which ordered GTB by way of Garnishee Order Absolute to pay Innoson Nigeria Ltd the sum of N2.4 Billion with a 22% interest, per annum, on the judgment sum until the final liquidation of the judgment debt, the bank is yet to comply with this order.

“In order to stop Innoson from continuing with taking over its assets in execution of the aforesaid judgment GTB approached the Federal High Court, Ibadan on Friday, 5th April 2019 and requested the court, through a motion, to stay execution and or for an injunction restraining Innoson from continuing with executing a judgment which the Supreme Court has affirmed when it dismissed the GTB’s appeal against the Court of Appeal’s decision affirming the High Court’s judgment and order in favour of Innoson.”

Continuing, the statement said, “We have previously stated that in a garnishee proceedings, once an order of garnishee nisi is made, the garnishee is required by law to set the amount involved aside and will not allow the judgment debtor to withdraw from it;

and if the order is made absolute, the garnishee pays the money to the judgment creditor and incurs no liability for doing that but if the order is not made absolute the garnishee returns the money to the judgment debtor.”

Going back memory lane, Innoson recalled the process it has gone with GTB over the years on their transactions that led to the current predicament of the bank.

“It will be recalled that the order was made absolute since 29th July 2011 and GTB held unto the money from that time and is using it for its business.

It follows that by the time the order was made absolute it was no more the judgment debtor’s money but rather that of Innoson Nigeria Ltd who is the judgment creditor; if a garnishee refuses to comply with the order, then, it becomes a judgment debtor, as GTB has become in the present case, against whom execution of the order will issue.

“Innoson Nigeria Ltd is aware that GTB had earlier deposed to an affidavit in the court that its banking operation will be seriously and adversely affected, and also its capital base eroded if it complies with the order of the court,” the statement said and urged the bank to comply with all the judgments by paying the N8.7 billion without further delay.

Cornel Osigwe
Head Corporate Communications
Innoson Group