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The Federal High Court sitting in Makurdi, Benue State capital has adjourned the case between Benue Investment and Property Company, the Nigeria Deposit Insurance Corporation and All States Trust Bank (in-liquidation) till May 5, 2025, for further hearing.
The BIPC, (plaintiff) çompany owned by the Benue State Government has dragged NDIC and All States Trust Bank (in liquidation) to the Federal High Court Makurdi, over illegal sales of its shares and breach of contract agreement.
The plaintiff in the suit averred that they applied for a loan facility of N550m from the Federal Mortgage Bank and pledged some of her shares to All States Bank (in-liquidation) for the Bank to guarantee the loan.
The plaintiff further avered that the defendants who did not fulfil their part of the contract agreements charged them to court and arbitrarily and sold the shares placed in their custody as collateral.
Therefore, they urged the court to order the defendants to pay N2. 6bn as loss of income for her inability to trade with stocks, which were pledged as collateral and had been with them since 2002.
“They should also pay the shares which in 2007 were valued at over N740m at the time of transaction and has appreciated to over N5.5bn in 2007.
“They should also pay N99.5m being proceeds b of the shares illegally sold and N62.8m being the value of lost dividends and bonuses over the period,” v the plaintiff prayed in the suit.
The plaintiff, therefore, asked the court to order the defendants to pay N2bn as general damages
Arewa PUNCH learnt that the case, which started in 2011, was put on hold because the NDIC requested an out-of-court settlement, which saw both parties headed to the Arbitration Panel in Abuja.
It was also reported that the panel could not resolve the matter because the NDIC later preferred to continue with the case in court.
As the case came up for hearing on Wednesday in Makurdi, Counsel to the plaintiff, Douglas Pepe (SAN) called one of the chief witnesses, Mr Paul Agu, a former staff and MD/CEO of the company.
Agu told the court that the plaintiff applied for a loan facility of N550m from the Federal Mortgage Bank and pledged some of her shares to All States Bank (in -liquidation) for the Bank to guarantee the loan.
He explained that the money was to come through the liquidated bank, adding that the bank was to take its commission and stand as the guarantor before the mortgage bank.
He stressed that the defendant (bank) failed to meet it’s contractual agreements with the plaintiff despite the fact that the bank started deducting charges from their account.
He disclosed that the defendant (bank) also failed to complete the process of opening the letter of credit as required in such case.
The counsel through the star witness tendered 32 documents to support their position.
Among the documents tendered were the bank statement of the plaintiff in All States Bank (in -liquidation) between August 1, 2002, and December 31, 2003.
He also tendered details of transfers of shares sold by the defendants and closed their case.
However, counsel to the defendants, Aondover Iorngee, after cross-examining the witness requested that a date for defence be issued.
The Presiding Judge, Justice Rafael Egbe, while adjourning the case, said, ‘the case is adjourned to May 5, 2025 for further hearing.”
English (US) ·