N32bn Judgment: Innoson asks court to stop GTB from name change

IVM Innoson Group of Companies, through one of its subsidiaries, Innoson Nig. Ltd., has asked the Supreme Court to stop Guaranty Trust Bank (GTB), from transmuting to a Private and a Financial Holding Company, until it pays the over N32 billion Supreme Court judgment debt.

A statement by Cornel Osigwe, spokesman, Innoson Motors, alleged that GTB was attempting to change its name in order to evade the payment of the N32bn court judgment.

Osigwe emphasised that as Innoson was awaiting GTB to come up with a payment plan for its over N32 billion Judgement debt, the bank resorted to a scheme of de-registering itself as a public limited liability company and re-registering as a private limited liability company and a financial holding.

Osigwe stated that the Supreme Court of Nigeria had struck out GTB’s motion filed to set aside its earlier decision/order made on February 27, 2019, dismissing the bank’s Court of Appeal judgment of February 6, 2014, which was in favor of Innoson Nigeria Ltd.

He recalled that the Federal High Court, Awka Division on March 27, 2019, pursuant to Supreme Court dismissing GTB’s appeal, granted leave to Innoson to enforce and execute the judgment and Garnishee Order Absolute made by the court Coram Shakarho, at the Ibadan Judicial Division on May 18, 2010, and July 29, 2011, respectively.

This order was concurrently affirmed by the Court of Appeal in the judgment of February 6, 2014, and by the Supreme Court in its judgment of February 27, 2019.

Osigwe stated that as Innoson commenced the act of court execution, the bank returned to the court vide its motion on notice seeking orders staying or suspending the execution embarked by Innoson and also sought orders setting aside the ex parte Orders made by the court granting the automobile company leaves to enforce the judgment.

He added that whilst refusing GTB’s application and staying further proceedings, the court further held that the order is made on March 27, 2019, in favour of Innoson Nigeria Ltd, granting it leave to enforce the judgment and issue processes of execution of the judgment are valid.

GTB, however, rushed back to the Supreme Court and applied for an order setting aside the Supreme Court’s judgment, dismissing its appeal against the above judgment, the Supreme Court struck out the motion on November 3rd, 2020.

He said the auto company had sued the bank at the Federal High Court and therein sought the court to restrain the fourth Defendant (Corporate Affairs Commission) from deregistering the first Defendant (GTB) as a public limited liability company and or re-registering the first Defendant (GTB) as a private limited liability until it-GTB, paid the outstanding judgment arising from the suit.

Among its prayers is that the court should stop the Corporate Affairs Commission from registering or re-registering the GTB as a holding or financial holding company, whether as a public or private limited liability company until it pays Innoson Nigeria Ltd the outstanding total judgment debt of N32.8 billion from
the appellate court.

It also wants an order setting aside the 3rd Defendant’s (Security and Exchange Commission) No -objection to 1st Defendant’s proposal to be re-registered as a private limited liability company and as a holding or a holding financial company.