Court invalidates GTB attempt to take over Stallion Lagos office

A federal high court sitting in Lagos on Monday set aside the recent attempt by the Guaranty Trust Bank to take over one of the offices of Stallion Nigeria Limited in Lagos over a disputed loan.

The court held that Guaranty Trust Bank was in violation of the consent judgment entered by the court on December 17, 2019 and proceeded to set aside the purported execution carried out by Guaranty Trust Bank Plc on February 1, 2023.

Ruling on an application filed by the law firms of Kanu Agabi & Associates, Wahab Shittu SAN and Bonajo Badejo & Co., on behalf of Stallion, Justice Allagoa held that the action of the bank was a violation of court judgment.

Specifically, the judge said the execution, which was purportedly done, while the court was yet to determine the timeline for the completion of the forensic audit pursuant to the consent judgment of the court, was wrongful and done with the intention to undermine the proceedings before the court.

The Court of Appeal presided over by Justices Daniel-Kalio, Sirajo and Banjoko, had previously delivered judgment in favour of Stallion Nigeria against Guaranty Trust Bank on February 24, 2022 and set aside the ruling of Justice Saidu in favour of GTB.

The court held that GTB could not rely on its own breach of the judgment to act or levy

execution against the assets of Stallion Nigeria. The court held that the execution which was purportedly carried out on February 1, 2023 and subsequent steps by the bank was not authorised by the court.

The court proceeded to set aside “any and every step taken by Guaranty Trust Bank Plc before, on or after February 1, 2023 in purported execution of the Consent Judgment of the Court dated December 17, 2019, in the light of the judgment of the Court of Appeal delivered on February 24, 2022 in favour of Stallion Nigeria”.

Recall that GTB on February 1, 2023 relying on the ex-parte order granted by Justice Saidu on December 2, 2019, which had expired, and the subsequent consent judgment, which GTB had breached and violated, tried to illegally enter one of Stallion’s properties in Victoria Island, Lagos.

Stallion Nigeria in its application, which was granted by the court had contended that, the

preliminary KPMG forensic audit report had established that GTB overcharged Stallion, in excess, fraudulent and illegal charges of N4,693,625,637.49. GTB accepted this finding by the auditors.

Stallion Nigeria contends that it is not owing GTB any longer and that on the contrary, it is on record that it has paid more than what was outstanding to GTB by N6,423,700,000, a fact GTB is fully aware of but continues to violate its own agreement, the court orders, and judgement of the courts.