Few days after the Supreme Court Ruling between GTBank and Innoson Motors, seven GTBank Branches has been closed/sealed by Innoson groups. According to the press release that appeared on the official Facebook Page of Innoson group, the Headquarter of GTBank will be sealed after sealing more GTBank branches later today.
But we can recall that GTBank released an official statement denying that they have any court case with Innoson Motors. They further went to make it clear that the Bank(GTBank) does not have court case with Innoson Motors.
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However a subsequent press release by Cornel Osigwe who is the head of Corporate communications for Innoson group states otherwise. The press release statement is as seen below
THE ENFORCEMENT OF JUDGMENT AGAINST GUARANTY TRUST BANK
We want to address the general public on the matters arising from the enforcement of judgment against GT Bank by Innoson Nigeria Ltd.GTB in a Press Statement signed by Erhi Obebeduo claims that “the judgment allegedly in issue is in respect of Garnishee Proceedings against the account of the Nigerian Customs Service Board domiciled with the Bank and not against the Bank as an entity”.
GTB by this claim is nothing short of being economical with the truth.The Garnishee order absolute issued by the Federal High Court Ibadan in Suit No: FHC/L/CS/603/2006 ordered GTB to pay Innoson Nigeria Ltd the judgment sum of N2.4 Billion with a 22% interest, per annum, on the judgment sum until the final liquidation of the judgment.
GTB appealed the Federal High Court’s decision up to the Supreme Court and lost. From the Supreme Court’s decision, you will find that the case was between GTB and Innoson Nigeria Ltd and no other person.
For emphasis, in a garnishee proceeding, 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.
In this case, the order was made absolute since 29th July 2011 and GTB held unto the money from that time and is using for its business.
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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.
Therefore, there is no merit or force in the GTB’s press statement. Furthermore and interestingly, the Garnishee order absolute was against GTB and no one else; and it is only GTB and no one else that will comply with the order; in the circumstance, the order will be executed against GTB and no one else. Please, be guided accordingly.
Head of Corporate Communications
Innoson Group Moves To Sealing GTBank Branches and Headquarters
The rumor flying around in the internet right now is that seven of GTBank branches have been sealed across the country. It seems that the headquarters of GTBank will likely be sealed at the end of the day. See picture below
This means that Innoson Motors are taking the court ruling and it seems the hands of GTBank is tied. What does this mean for GTBank and how will it affect the Bank, subsequent events will reveal.
But it is important to note that GTbank have run of out legal options as the highest court in Nigeria have ruled against them.
What happens if Innoson groups take over GTBank? HowwillGTBank respond to the sealing of GTBank branches? what do you think about this turn of events? Please feel free to use the comment section below