A Federal high court sitting in Lagos south west Nigeria
has ordered Former minister of Transport Major General Mohammed Magoro
(retired)to pay a debt of N104, 061,683 to Skye bank Plc. The judgment of the court was sequel to a debt recovery suit
filed by Skye bank Plc against Major General Magoro and a limited
Liability company Automobile Manufacturers Company limited.
has ordered Former minister of Transport Major General Mohammed Magoro
(retired)to pay a debt of N104, 061,683 to Skye bank Plc. The judgment of the court was sequel to a debt recovery suit
filed by Skye bank Plc against Major General Magoro and a limited
Liability company Automobile Manufacturers Company limited.
In a statement of claim dated 20th of July 2009 filed
before the court by Skye bank Plc, it was alleged that Automobile
manufacturers company as a customer of the bank applied for and was
granted the following facilities: Sometime in February 2001, the company applied for a loan
facility of N 21, 300,000 for the financing a contract for the supply of
5 units of BMW motorcycles to Nasarawa State Government.
before the court by Skye bank Plc, it was alleged that Automobile
manufacturers company as a customer of the bank applied for and was
granted the following facilities: Sometime in February 2001, the company applied for a loan
facility of N 21, 300,000 for the financing a contract for the supply of
5 units of BMW motorcycles to Nasarawa State Government.
On the 29th of March, 2001 the company further applied for overdraft facility of N39million which was granted. By another offer letter dated 6th July, 2001, Skye bank Plc
granted the company’s application for a credit facility in the sum of
48million, and further facility of N12, 500 was also granted to the
company via offer letter dated 7th January, 2002 to finance the
procurement and installation of Radio communication for Nasarawa State
Government.
granted the company’s application for a credit facility in the sum of
48million, and further facility of N12, 500 was also granted to the
company via offer letter dated 7th January, 2002 to finance the
procurement and installation of Radio communication for Nasarawa State
Government.
The various facilities granted by the bank to the company
stood at N111,800,000 which was fully drawn and utilized by the company
and with the fully backing of Major General Mohammed Magoro who was a
Director to the company executed a full and unconditional personal
guarantee for the full facility amounts and accrued interest in favour
of Skye bank Plc
stood at N111,800,000 which was fully drawn and utilized by the company
and with the fully backing of Major General Mohammed Magoro who was a
Director to the company executed a full and unconditional personal
guarantee for the full facility amounts and accrued interest in favour
of Skye bank Plc
The defendant failed to repay the outstanding facilities
despite several demands by the bank, there is currently an outstanding
sum of N104, 061,683. However, the defendants filed statement of defense and
counter claim along with lists of witnesses and their written statements
on oath, but the defendant failed to attend court, their written
depositions were never adopted, therefore what was before the court are
the pleadings not supported by evidence, which were deemed abandoned.
despite several demands by the bank, there is currently an outstanding
sum of N104, 061,683. However, the defendants filed statement of defense and
counter claim along with lists of witnesses and their written statements
on oath, but the defendant failed to attend court, their written
depositions were never adopted, therefore what was before the court are
the pleadings not supported by evidence, which were deemed abandoned.
In her judgment the presiding judge Mojisola Olatoregun said
’The court cannot rewrite the contract for parties. Once the defendant
found the terms acceptable, the parties are bond. There is nothing on
the other side against which the evidence led by the plaintiff could be
evaluated on the imaginary seek as the defendants failed to adduce
evidence in support of their pleadings, plaintiff will succeed on
minimum proof. The inability of the guarantor crystallizes immediately
the third person is unable to pay the outstanding debt.
’The court cannot rewrite the contract for parties. Once the defendant
found the terms acceptable, the parties are bond. There is nothing on
the other side against which the evidence led by the plaintiff could be
evaluated on the imaginary seek as the defendants failed to adduce
evidence in support of their pleadings, plaintiff will succeed on
minimum proof. The inability of the guarantor crystallizes immediately
the third person is unable to pay the outstanding debt.
I accept the plaintiff evidence on this and I am satisfied
that Major General Magoro is liable to liquidate the indebtedness of the
defendants. The prayer of the bank for the claim of the sum of N104,
061, 688, 30 being the outstanding amount owed the bank as at 19th
January 2004 by the Automobile Manufacturer company limited succeeds.
that Major General Magoro is liable to liquidate the indebtedness of the
defendants. The prayer of the bank for the claim of the sum of N104,
061, 688, 30 being the outstanding amount owed the bank as at 19th
January 2004 by the Automobile Manufacturer company limited succeeds.
Interest on the aforesaid sum of N104, 061, 688, 30 at the
rate of 20% per annum up till date of judgment and thereafter at the
rate of 10% per annum until judgment is fully satisfied also succeeds
.Cost of N50,000 is awarded in favour of Skye bank Plc.
rate of 20% per annum up till date of judgment and thereafter at the
rate of 10% per annum until judgment is fully satisfied also succeeds
.Cost of N50,000 is awarded in favour of Skye bank Plc.
Meanwhile Skye bank has filed an application before the
court to garnishee the accounts of the defendants to satisfy the
judgment sum.
court to garnishee the accounts of the defendants to satisfy the
judgment sum.
However Major General Magoro has filed an
application before the court urging the court to stay any form of
judgment enforcement of the judgment sum of N104, 061, 688, 30 obtained
against him by Skye bank Plc.
application before the court urging the court to stay any form of
judgment enforcement of the judgment sum of N104, 061, 688, 30 obtained
against him by Skye bank Plc.
The defendants averred that they are disatisfied with the
said judgment and want an appeal lodged against the said decision; they
alleged that there was no evidence led in his defense consequently he
was denied fair hearing. In addition the court did not hear their own
counter claim. Justice Olatoregun has adjourned till 27th of September, 2018 for further hearing.
said judgment and want an appeal lodged against the said decision; they
alleged that there was no evidence led in his defense consequently he
was denied fair hearing. In addition the court did not hear their own
counter claim. Justice Olatoregun has adjourned till 27th of September, 2018 for further hearing.
