Court faults UBA over illegal freezing of firm’s account, orders bank to pay N3.5m damages, apologise
By Jude-Ken Ojinnaka
The Federal High Court sitting in Lagos has hit the gavel on the table against United Bank for Africa (UBA) Plc, for unlawfully placing a Post-No-Debit (PND) on the account of one of its numerous customers, Ceddi Services Limited.
The court presided over by Justice Yellim Bogoro faulted the illegal acts of the bank, and held that such action amounted to flagrant breach of fundamental rights to fair hearing and property ownership of the company.
Consequently, Justice Bogoro, ordered UBA Plc, to tender unreserved public apology to the claimant. The judge ordered that the apology must be published in two national newspapers.
The judge further ordered UBA Plc to pay a total sum of N3.5 million as damages , being loss incurred by the company during the period that the account was frozen.
Justice Bogoro made the above orders while delivering judgement in suit numbered FHC/L/CS/1461/2020, filed by the company against UBA Plc and three others.
Others listed as defendants alongside UBA Plc are the Inspector-General Of Police, Deputy Inspector-general Of Police (Force Intelligence Bureau, Police Force Headquarters, Abuja) and the Nigerian Police Force, who were joined in the suit by the order of Justice Peter Lifu, on November 1, 2021.
The company, Ceddi Services Limited, through its legal team, who includes Oladapo Akinosun (SAN) and Akintayo Iwilada, had approached the court for the above granted orders and many others, through a fundamental rights enforcement suit, which they brought pursuant to Section 42 of the Companies And Allied Matters Act (CAMA)2020; Section 36 and 44 of the Constitution of the Federal Republic of Nigeria 1999 (As Amended) and Article 7 and 14 of the African Charter On Human And Peoples Rights (Ratification And Enforcement) Act Cap. A9, LFN, 2004.
In the affidavit in support of the motion, deposed to by its Manager, Administration and Property Services, Mrs. Ngozi Agorua, the company told the court that it has been banking with UBA Plc since February 16, 1998, with Account name: Ceddi Services Limited; Account Number: 100*9; Branch: 9, Wharf Road, Kariko House, Apapa, Lagos.
Mrs. Agorua averred that on August 27, 2020, at about 10:00am, her colleague, Mr. Godwin Abuede was at the bank’s branch Office at 9, Wharf Road, Kariko House, Apapa, Lagos to present cheques for personal income tax in favour of the Lagos State Internal Revenue Service.
She averred that surprisingly, when Mr. Abuede got to the bank, the attendant refused to honour the cheque presented without any explanations.
The plaintiff said she decided to check the internet banking portal to ascertain the company’s account status.
The plaintiff added that upon viewing the firm’s banking porter, she discovered that the account status was tagged: ‘Debit Frozen Account’. And she immediately reached out to the bank vide code call but there was no response.
In its defence, counsel to the bank averred that his bank has not breached any of the rights of the firm, but only acted in accordance with a valid order lawfully issued by a court of law and presented by a competent authority in line with their primary functions under the law., adding that the funds standing to the credit of the firm is still available to the company subject to the court’s order.
He averred that the UBA Plc is not indebted to the applicant in any way or liable to it for any damages whatsoever asit has not acted unlawfully.
He also averred that the bank is mandated by law to comply with all valid orders of court inclusive of the Banker’s Order dated August 17, 2020 and the bank is not in a position to question the validity of such order. He added that the firm is fully aware of the existence of the Banker’s Order, but failed to apply to the court to challenge the validity of the said order or even apply to set it aside or discharge same.
He submitted that the bank is duty-bound to obey Court orders served on it and this clearly absolves the bank from any damages that may arise out of the obedience to that Court order. He argued that the firm does not have a reasonable cause of action against the bank to make out a claim of violation of its fundamental rights.
Delivering judgment in the suit, Justice Bogoro held that UBA Plc acted illegally in freezing the company’s account with a repealed banker order.
Consequently, the court ordered UBA Plc to tender unreserved public apology to the claimant, and pay a total sum of N3.5 million as damages.