An automobile company, Innoson Vehicles Manufacturing Company, has asked Guaranty Trust Bank (GTB) to convert the Supreme Court’s judgement debt of N8.7 billion to shares if the bank cannot pay cash.
Innoson’s head of corporate communications, Mr. Cornel Osigwe, said in a statement that the company was aware that GTB had earlier deposed to an affidavit in court that its banking operations will be “seriously and adversely affected” if it complies with the court order.
Therefore, it (Innoson) said based on the bank’s oath, it should as a matter of urgency, convert the N8.7bn judgement debt or part of it into shares and allot to Innoson to save it from operational damage.
“GTB’s bid to 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 grant it an injunction to restrain Innoson from continuing to levy execution against it; the court also refused to stay execution,” the statement read.
It added: “In furtherance of the letter to GTB by counsel to Innoson Nigeria Ltd., McCarthy Mbadugha, on 25th March, 2019, that it pays the N2.4 billion judgement debt to Innoson Nigeria Ltd. with the accrued interest of N6,717,909,849.96, Innoson Nigeria Ltd. therefore, demands from GTB that if its banking operation will be seriously and adversely affected and its capital base eroded as a result of the N8.7 billion judgement debt, that it should, as a matter of utmost urgency, convert the said sum or part of it into shares and allot same to Innoson Nigeria Ltd..
“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.
“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 debt,” said the automobile firm.
