Transactions were on Thursday halted in three branches of Skye Bank and its pay point office in LAUTECH, Osogbo, Osun state capital, as bailiffs of the state High Court sealed off the bank’s offices following an order of the court in a case of alleged breach of N3 billion contract filed by Tuns Farms Nigeria Limited.
But, in a swift reaction, the bank described the action of the court's bailiffs as illegal, saying there is an application for stay of execution of the court order pending in the court.
Justice A. O. Ogunlade had in a ruling of March 14, 2014, held that there was overwhelming evidence before the court that Skye Bank, defendant in the suit, breached the fundamental terms of the contract it signed with the Tuns Farms (claimant).
The court also authorised the seizure of any money, bank notes, cheques, bills of exchange, promissory notes, bonds or securities for money, found within the Osogbo Judicial Division of the bank.
Acting on the order of the court, the bailiffs had stormed the branches of Skye Bank around 8.20 am yesterday and prevented the staff members on duty from carrying out their duties.
All the staff members were sent out while cars, generators, and other movable properties of the banks were taken away by the court bailiffs. Also, a Honda Accord car with registration number Lagos KTU 373 AY, belonging to the Regional Manager of the bank was also towed away.
The Regional Manager told journalists that his second car at the Alekuwodo branch of the bank had also been towed away.
According to documents obtained by THISDAY, the bank had entered into agreement with Tuns Farm in 2005, after it offered a credit facility of N414,000,000 to Tuns for the development of the Abuja property projected to earn Tuns a net income of N1.152 billion.
It further revealed that Skye Bank released only N150 million, an action, which the company said frustrated its project, resulting in huge loss of its (the company’s) investment.
According to the judgment obtained by THISDAY, the court was to seize any money, bank notes, cheques, bills of exchange, promissory notes, bonds or securities for money, found within the Osogbo Judicial Division of the bank.
A Certified True Copy of the judgment showed that Justice Ogunlade also awarded N421,384,000 damages in favour of the claimant company for the huge losses it suffered due to the refusal and failure of Skye Bank to comply with the terms and conditions of the contract of 17th August, 2005.
The judge held: "I am convinced by overwhelming evidence laid before me that the Defendant (Skye Bank) breached the fundamental terms of the contract in facility 11 of Exhibit PA1 without lawful justification and I hereby make an award of special damage in full to the Claimant, in the sum of N421,384,000, being the loss the Claimant suffered due to the refusal and failure of the Defendant to comply with the terms and conditions of the contract of 17th August, 2005.”
The court further ruled: "The Claimant, through one of the paragraphs of its statement of claim has established the fact that the breach of the terms and conditions of the contract in facility 11 of Exhibit PA1 caused the Claimant's director and shareholders myriad of psychological trauma and emotional breakdown.
"I am in agreement with the assertion of the Claimant, considering the credible and in some areas uncontroverted evidence led before me that general damage should be awarded in this suit.
"I consider the sum of N25 million adequate, as general damages to the Claimant by the Defendant in this suit.”
Also, Justice Mohammed Danjuma of the Court of Appeal on May 8, 2015, dismissed an appeal filed by Skye Bank against the ruling of the High Court on the ground that it lacked merit.
The appellate court affirmed the judgment of the High Court of Osun State delivered by Justice Aderibigbe.
Three High Court judges, Justices Oyejide Falola, A. O. Ogunl
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