First Bank Asks Court To Compel Customer To Pay Alleged N750m Debt

First Bank Asks Court To Compel Customer To Pay Alleged N750m Debt

First Bank of Nigeria Plc has prayed a Federal High Court, sitting in Lagos to compel one of its customers, Chidi Ajaegbu to pay an alleged N750 million naira facility the bank granted to him in 2008.

The dispute between the bank and Ajaegbu arose out of a loan agreement in which the bank borrowed Ajaegbu the sum of $5million US dollars to purchase 203,500 Linked Units shares of MTN Nigeria Limited through private placement.

Ajaegbu instituted the suit against the First bank (the first defendant) and Stanbic IBTC Asset Management Limited, urging the court to stop the defendants from selling his Linked Units shares in MTN Nigeria Limited among other reliefs being sought in court.

However, First bank in a 77-paragraph statement of defence and counter-claim, among others contended that the claimant in a letter dated January23 2008 sent to MTN Nigeria Limited and copied to it the claimant irrevocably authorized MTN to place his MTN Linked Units shares on lien in favour of First bank.

The bank also maintained that the loan facility was secured with the Linked Units shares In MTN, in addition to the shares of CTC Global Ventures Limited and Rehoboth Assets Limited, two companies where the claimant has substantial and controlling interest.

By the terms of contact, the first defendant further averred that the expiration date for the repayment of the loan facility was January 31, 201.

It was the contention of the first defendant that the claimant has defaulted in its obligation under the contract having failed to liquidate the loan before the expiration of the agreed date and has breached the express terms of the contract which has also made its power to sell the Linked Units shares in MTN accrued.

But Ajaegbu insisted that the alleged undue interest charges on the loan facility affected his obligation to service the loan as at when due and prayed the court to compel the first defendant to refund the alleged excess charges

Countering the claim of excess charges, the first defendant posited that the conversion of the loan facility from dollar to naira mutually agreed on by parties to minimize risk, necessitated charging of new interest regime.

While the claimant is seeking for an order uf perpetual injunction restraining defendants from disposing off his shares in Ashaka Cement, Diamond Bank, Eco Bank, Afri Bank and Stanbic IBTC Bank Plcs,  charged  as collateral for the loan deal and refund of N51.2million alleged to have been wrongly charged, the first defendant wants  a refund of N750million plus accrued interest; N40million danages for alleged breach of contract and N15million legal cost.