N136m Unpaid Loan: Court Orders Seizure Of Senator Umeh’s Assets
The Abuja Division of the Federal High Court has ordered the seizure of assets belonging to the Senator representing Anambra Central, Chief Victor Umeh, over his failure to pay off about N136 million debt that accrued from a loan he got from the defunct Skye Bank Plc, in 2008.
The court, in the judgement that was delivered by Justice Inyang Ekwo, held that evidence that was adduced before it by the Asset Management Corporation of Nigeria, AMCON, showed that the lawmaker took a loan of N23,250,000.00 from the defunct bank to invest in shares.
AMCON told the court that it later acquired the unpaid debt when Skye Bank Plc became unsuccessful in making Umeh to pay back the loan which it said stood at N135,722,303.40k as of April 2011.
It, therefore, prayed the court to compel the defendant to pay his loan debt.
Delivering judgement in the suit marked: FHC/ABJ/AMC/12/2022, Justice Ekwo, stressed that Senator Umeh failed to file any defence before the court, even though he was duly served with the processes.
“It is to be noted at this point that the defendant, upon being served, failed to enter a defence in this case.
“It is trite law that the net effect of the failure of a defendant to file pleadings is that the assertions of the claimant in his pleadings stands unchallenged and are deemed admitted and established
“It is also true that the effect of a defendant’s failure to call evidence in defense of the claims against him at the trial is that he is presumed to have admitted the case made against him by the claimant,” the judge held.
He added that despite Umeh’s failure to file a defence, AMCON was able to prove its case through the proof of evidence it adduced before the court.
“I find that the plaintiff has established its case by preponderance of evidence as required by law.”
According to the court, “the tenor of the credit facility granted to the defendant was specifically fixed for 356 days.”
It noted that the offer letter that was issued to the defendant by the bank, contained various other explicit terms and conditions, which he agree to by duly executing the memorandum of acceptance.
“The defendant utilised the funds granted to him as credit facilities by the bank. However, at the expiration of the tenor of the facility, the defendant failed and neglected to liquidate the credit facility as per the contract.”
Aside from ordering the forfeiture of Umeh’s 5,000,000 units of Skye Bank shares in the records of the Central Securities & Clearing System, to AMCON, Justice Ekwo further awarded a cost of N2m against the defendant.
Specifically, the court, held thus: “A declaration is hereby made that the defendant is indebted to the plaintiff, in the sum of N135,722,303.40 representing the principal debt sum plus all the accrued interest and charges, at the rate of 15 percent per annum drawn up to January 25, 2021, being the sum due and outstanding from the defendant to the plaintiff.
“A declaration is hereby made mandating the defendant to pay to the plaintiff the sum of N135,722,303.40 representing the principal debt sum, plus all the accrued interest and charges, at the rate of 15 percent per annum drawn up to January 25, 2021, in settlement of the debt due and outstanding from the defendant to the plaintiff.
“An order is hereby made mandating the defendant to pay the plaintiff a sum representing 15 percent of the principal sum as interest on the judgement sum from January 26, 2021, until the date of delivery of the judgement.
“An order is hereby made mandating the defendant to pay the plaintiff a sum representing 15 percent of the judgement sum as interest on the judgement sum, from the date of delivery of the judgement till the date of full and final liquidation of same.
“A declaration is hereby made that the defendant is liable to a total forfeiture and divestment of all his title, rights, interests, benefits, and claims in respect of the 5,000,000 shares of Skye Bank shares in the record of the Central Secures & Cleaning System while the plaintiff is entitied to take over, as beneficial owner, all the title, rights, interests, benefits and claims in respect of same.
“An order of final foreclosure and final forfeiture is hereby made foreclosing and divesting the defendant of his title, rights and interests, in respect of the 5,000,000 units of Skye Bank shares in the records of the Central Securities & Clearing System and vesting same in the plaintiff in furtherance of part liquidation and satisfaction of the outstanding debt obligation of the defendants due to the plaintiff.
“An order is hereby made mandating the defendant to pay to the plaintiff the sum of N2,000,000 00 as costs for filing and pursuing this claim.” the court added.
Hafsoh Isiaq is a graduate of Linguistics. An avid writer committed to creative, high-quality research and news reportage. She has considerable experience in writing and reporting across a variety of platforms including print and online.
