Access Bank to Pay N1.8bn Damage for Illegal Deductions

Justice Ambrose Lewis-Allagoa of the Federal High Court, Lagos has awarded a damage sum of N1.817,690,414. 65 billion against Access Bank Plc for unlawful deductions and opening of fictitious accounts.

The court, after the dismissal of the counterclaim by Access Bank in two separate suits numbered FHC/L/CS/1485/2015 and FHC/L/CS/1493/2015, and the grant of the reliefs sought by the plaintiffs, ordered the lender to pay the damage sum to the plaintiffs, MicCom Cables and Wires Limited; Tunde Ponnle; and Comic Holdings Limited

Justice Lewis-Allagoa also ordered that the judgment sum awarded against the defendant (Access Bank), inclusive of interest thereon shall, within 3 days of delivery of the judgment, be paid into the 1st Plaintiff’s account details; Account Name: Origin Limited. Bank; Keystone Bank Limited. Account Number: 1006707643.”

The plaintiffs in the suit marked FHC/L/CS/1485/2015 were MicCom Cables and Wires Limited; Tunde Ponnle; and Commic Holdings Limited, who joined in the suit according to the Court order of February 16, 2018.

The plaintiffs in the suit marked FHC/L/CS/1493/2015 were Origin Energy Limited and Abiodun Ponnle.

However, while Access Bank is the sole defendant in the two suits, it filed a counterclaim for N1,058,141,649.98 billion in the suit marked FHC/L/CS/1493/2015 against Origin Energy Limited, Mr. Abiodun Ponnle, Chief Tunde Ponnle, MicCom Cables & Wires Ltd, and Comic Holdings Ltd. However, the court dismissed the counterclaim.

Tokunbo Davis, counsel to MicCom Cables, Tunde Ponnle and Comic Holdings in the suit marked FHC/L/CS/1485/2015, in the second further amended statement of claim dated March 8, 2024, and filed on March 12, 2024, asked the court for 27 reliefs against Access Bank Plc.

Some of the reliefs are “a declaration that the balance reflected in the 1st Plaintiff’s statement of account as of 2nd September 2015 is the true and accurate balance on the 1st Plaintiff’s account, and also, “A declaration that by the 1st Plaintiff’s statement of account, as at 2nd September 2015, the 1st Plaintiff is not indebted to the defendant in the alleged sum of N452, 994,359.45 or any sum whatsoever. 

“An order directing the defendant to immediately release unconditionally the title documents of the properties located at Plot 2018 Cotonou Street, Wuse Zone 6, Abuja, 21 Odebunmi Street, Egbeda, Lagos, 3 Ponnle Street, Egbeda, Lagos, 3/5 Edun-Alaran Road, Ojokoro Agege and 1 Ramat Crescent, Ogudu GRA, Lagos, and any other documents used as security In the credit facility constituted in the offer letter dated 18th March, 2013, to the Plaintiffs. 

“A declaration that the detention/retention of the 3rd Plaintiff’s title documents to the property known as 1, Ramar Crescent, Ogudu, G.R.A, Lagos, even though the 1st Plaintiff is not in any way indebted to the Defendant, is inconsistent with the 3rd Plaintiff’s right over the said property and is wrongful. 

“Damages in the sum of N500 million, for the unlawful refusal/ failure of the defendant to release to the 3rd Plaintiff the title documents to the property at 1, Ramat Crescent, Ogudu, G.R.A Lagos, from 18th November 2014 till date. 

“A declaration that the alleged debit balance on the 1st Plaintiff’s account no: 0004842444 maintained with the defendants is an aggregate of the imputation of excessive debit, unwholesome charges, compound interest, overcharges and all other illegal and unauthorized charges and interests imputed in the 1st Plaintiff’s Account contrary to the terms of Offer Letters dated 24th May 2006, 20th September 2006, 6th April 2010, 24th December 2010, and 18th March 2013 are illegal, null and void. 

“An order that any Judgment sum awarded against the Defendant inclusive of interest thereon shall, within 3 days of delivery of the Judgment, be paid into the 1st Plaintiff’s account below: Account Name: MicCom Cables & Wires Ltd; Bank: Keystone Bank Limited Account Number 1006178177.

“Solicitor cost of this action calculated at 15% of whatsoever monetary judgment this Honourable Court makes.”

Access Bank, while opposing the suit urged the court to dismiss the suit for being unsubstantiated and frivolous.

However, Justice Lewis-Allagoa in his ruling of October 16, 2024, after reading through all the processes filed by the parties and submissions made by their lawyers ordered: “that a Declaration is made the alleged debit balance on the 1st Plaintiff’s account no: 0004842444 maintained with the Defendants is an aggregate of the imputation of excessive debit, unwholesome charges, compound interest, overcharges and all other illegal and unauthorised charges and interests imputed in the 1st Plaintiff’s Account contrary to the terms of Offer Letters dated 24 May 2006, 20″ September 2006, 6” April 2010, 24″ December 2010, and 18” March 2013 are illegal, null and void”. 

He went further, “A declaration is made that the unilateral variation of interest applied by the Defendant through its officials without the formal consent and approval of the 1st Plaintiff is illegal and ought to be set aside. 

“A declaration is made that all charges inconsistent with the Offer Letters dated 24th May 2006, 20th September 2006, 6th April 2010, 24th December 2010, and 18th March 2013 are illegal, null and void. 

“A declaration is made the unauthorized, illegal, excessive and unsubstantiated charges, fees, interests, or deductions levied or charged to the accounts of the 1st Plaintiff by the Defendant amount to a fundamental breach and the 1st Plaintiff is entitled to treat same as repudiatory and to rescind from the credit facilities agreement constituted in the Offer Letters dated 24th May 2006, 20th September 2006, 6th Apni, 2010, 24 December 2010, and 18th March 2013 are illegal, null and void. 

“A declaration is made that the Defendant is not entitled to take any action and or exercise any rights whatsoever arising from any purported right contained in the Deed of Fixed and Floating Debenture, Deed of Mortgage Debenture and/or Tripartite Legal Mortgage in respect of the properties pursuant to the Offer Letter dated 18th March, 2013 towards recovery of the alleged debt of N452,994,359.45 million, or any debt allegedly owed by the Plaintiffs to it whether as primary or secondary debtors. 

“A declaration is made that by virtue of CBN prudential guidelines, the Defendant is under an obligation to reconcile the account of the 1st Plaintiff with the 1st Plaintiff’s auditors and render full and proper account of how funds deposited into, credited to or otherwise due and accruing to the 1st Plaintiff has been managed and applied in respect of the account maintained by the 1st Plaintiff, failing which the defendant is bound by the audit conducted by the 1st Plaintiff. 

“An order is made that Defendant should reverse, deduct or otherwise cancel all unauthorised, illegal, excessive and unsubstantiated charges, fees, interests, or deductions however called which have been levied or charged to the accounts of the 1st Plaintiff. 

“An order is granted for the immediate refund of the sum of N317, 690, 415.65 million, representing unlawful excess and undue interest charges together with interest calculated thereon at the prevailing Central Bank of Nigeria MRR/MPR rates in line with Section 3.3.5 of the CBN Monetary Credit Foreign Trade & Exchange Policy Circular No. 40 of January 2014. 

The court also in addition to others, granted, “Flowing from above, judgment in the sum of N317,690,415.65 million, as already pleaded, is granted.