Court orders Access Bank to pay customers  N1.8bn for unlawful deductions, excessive charges 

 

A Federal High Court sitting in Lagos has awarded a sum N1.817 billion as damages against Access Bank Plc for unlawful deductions and opening of fictitious accounts.

The presiding judge, Justice Ambrose Lewis-Allagoa ordered Access Bank Plc to pay the aforesaid sum as damages to the plaintiffs in two separate suits marked FHC/L/CS/1485/2015 and FHC/L/CS/1493/2015.

The plaintiffs in the suit marked FHC/L/CS/1485/2015 are MicCom Cables And Wires Limited; Chief Tunde Ponnle; and Commic Holdings Limited, joined in the suit pursuant to the order of Court made on February 16, 2018. Whereas the plaintiffs in the suit marked FHC/L/CS/1493/2015 are ; Origin Energy Limited and Mr. Abiodun Ponnle.

Access Bank Plc is the sole defendant in the two suits.

But the bank filed a counter-claim of the sum of N1,058,141,649.98 billion in the suit marked FHC/L/CS/1493/2015, against Origin Energy Limited, Mr. Abiodun Ponnle, Chief Tunde Ponnle, MicCom Cables & Wires Ltd and Commic Holdings Ltd. However, the counter-claim was dismissed by the court.

In their second further amended statement of claim on suit marked FHC/L/CS/1485/2015 dated March 8, 2024 and filed on March 12, 2024, filed by their counsel Tokunbo Davis, the Plaintiffs prayed the court for 27 reliefs against Access Bank Plc.

Some of the reliefs sought by the Plaintiffs include;
“A declaration that the balance reflected in the 1st Plaintiff’s statement of account as at 2nd September, 2015 is the true and accurate balance on the 1st Plaintiff’s account.

“A declaration that by virtue of the 1st Plaintiff’s statement of account, as at 2nd September, 2015, the 1st Plaintiff is not indebted to the defendant in the alleged sum of N452, 994,359.45 (Four Hundred and Fifty-Two Million Nine Hundred and Ninety four Thousand Three Hundred and Fifty-Nine Naira Forty-Five Kobo Only) or any sum whatsoever.

“An order directing the defendant to immediately release unconditionally the title documents of the properties located at Plot 2018 Cotonou Street, Wuse Zone 6, Abuja, 21 Odebunmi Street, Egbeda, Lagos, 3 Ponle Street, Egbeda, Lagos, 3/5 Edun-Alaran Road, Ojokoro Agege and 1 Ramat Crescent, Ogudu GRA, Lagos, and any other documents used as a security In the credit facility constituted in the offer letter dated 18th March, 2013, to the Plaintiffs.

“A declaration that the detention/retention of the 3rd Plaintiff’s title documents to the property known as 1, Ramar Crescent, Ogudu, G.R.A, Lagos, despite the fact that the 1st Plaintiff is not in anyway indebted to the Defendant, is inconsistent with the 3rd Plaintiff’s right over the said property and is wrongful.

“Damages in the sum of N500 million, for the unlawful refusal/ failure of the defendant to release to the 3rd Plaintiff the title documents to the property at 1, Ramat Crescent, Ogudu, G.R.A Lagos, from 18th November, 2014 till date.

“A declaration that the alleged debit balance on the 1st Plaintiff’s account no: 0004842444 maintained with the defendants is an aggregate of the imputation of excessive debits, unwholesome charges, compound interest, overcharges and all other illegal and unauthorized charges and interests imputed in the 1st Plaintiff’s Account contrary to the terms of Offer Letters dated 24th May, 2006, 20th September, 2006, 6th April, 2010, 24th December, 2010, and 18th March, 2013 are illegal, null and void.

“A declaration that the unilateral variation of interest applied by the Defendant through its officials without the formal consent and approval of the 1” Plaintiff is illegal and ought to be set aside.

“A declaration that all charges inconsistent with the Offer Letters dated 24th May, 2006, 20th September, 2006, 6th April, 2010, 24th December, 2010, and 18th March, 2013 are illegal, null and void.

“A declaration that the unauthorized, illegal, excessive and unsubstantiated charges, fees, interests, or deductions levied or charged to the accounts of the 1st Plaintiff by the Defendant amount to a fundamental breach and the 1st Plaintiff is entitled to treat same as repudiatory and to rescind from the credit facilities agreement constituted in the Offer Letters dated 24th May, 2006, 20th September, 2006, 6th April, 2010, 24th December, 2010, and 18th March, 2013 are illegal, null and void.

“A declaration that the defendant is not entitled to take any action and or exercise any rights whatsoever arising from any purported right contained in the Deed of Fixed and Floating Debenture, Deed of Mortgage Debenture and/or Tripartite Legal Mortgage in respect of the properties pursuant to the Offer Letter dated 18th March, 2013 towards recovery of the alleged debt of N452, 994, 359. 45 million, or any debt allegedly owed by the Plaintiffs to it whether as primary or secondary debtors.

“A declaration that by virtue of CBN prudential guidelines, the Defendant is under an obligation to reconcile the account of the 1st Plaintiff with the 1st Plaintiff’s auditors and render full and proper account of how funds deposited into, credited to or otherwise due and accruing to the 1st Plaintiff has been managed and applied in respect of the account maintained by the 1st Plaintiff, failing which the defendant is bound by the audit conducted by the 1st Plaintiff.

“An order that the defendant should reverse, deduct or otherwise cancel all unauthorized, illegal, excessive and unsubstantiated charges, fees, interests, or deductions howsoever called which have been levied or charged to the accounts of the 1st Plaintiff’s.

“An order for the immediate refund of the sum of €317, 690, 415. 65 (Three Hundred and Seventeen Million Six Hundred and Ninety Thousand Four Hundred and Fifteen Naira Sixty-Five Kobo) representing unlawful excess and undue interests charges together with interest calculated thereon at the prevailing Central Bank of Nigeria MRR/MPR rates in tine with Section 3.3.5g of the CBN Monetary Credit Foreign Trade & Exchange Policy Circular No. 40 of January, 2014.

“Flowing from above, judgement in the sum of N317,690,415.65 million as already pleaded.”

“In the alternative to 13 and 14 above: an order for the immediate refund of the sum of N69, 614, 238.74 million, representing unlawful excess and undue interests charges together with interest calculated thereon as contained in the CBN Report.

“A declaration that the overdraft interest, commission on turnover, facility fee, management fee other fees, access online fee, balance on comm. + vat BA repayment & interest, loan repayment & interest, import charges are all illegal and excessive charges.

“An order of perpetual injunction restraining the Defendant either by itself, servants, agents or privies howsoever called from exercising any right whatsoever purportedly conferred by the Deed of Fixed and Floating Debenture, Deed of Mortgage Debenture and/or Tripartite Legal Mortgage in respect of the properties pursuant to the Offer Letter dated 18th March, 2013.

“An order of perpetual injunction restraining the Defendant either by itself, servants, agents or privies howsoever called from exercising any right whatsoever purportedly conferred under and by virtue of the Personal Guarantee of the 2nd Plaintiff pursuant to the Offer Letter dated 18th March, 2013.

“An order of injunction restraining the defendant whether by itself, officers, servants, agents and or privies from selling, disposing of or otherwise exercising any right in respect of the properties known as: Plot 2018 Cotonou Street, Wuse Zone 6, Abuja, 21 Odebunmi Street, Egbeda, Lagos, 3 Ponle Street, Egbeda, Lagos, 3/5 Edun-Alaran Road, OjokoroAgege and 1 Ramat Crescent, Ogudu GRA, Lagos.

“An order of perpetual injunction restraining the defendant, its agents or privies howsoever called from harassing, disturbing or otherwise interfering howsoever with the proper running of the commercial operations of the 1st Plaintiff.

“An order of perpetual injunction restraining the Defendant whether by itself, agents, privies or whomsoever acting upon or at the instigation or directives of the Defendant from making or attempting to make representations and/or complaints concerning the 1st and 2nd Plaintiffs account to third parties and/or imputing the financial statement of the 1st and 2nd Plaintiffs or howsoever into the Credit Risk Management System of the Central Bank of Nigeria.

“An order of perpetual injunction restraining the Defendant from howsoever causing the arrest and/or detention of any of the officers or directors of the 1st and 2nd Plaintiffs on account of any alleged indebtedness arising from the credit facilities agreement constituted in the Offer Letters dated 17 May, 2007, 18th March, 2013.

“Damages in the sum of N1 billion resulting from the reputational injury and damage to business suffered by the 1st Plaintiff and loss of access to funds which would have yielded immense profits.

“Interest on all sums due above at the interest rate of 25% per annum from March, 2013 till date of judgment and thereafter at the rate of 10% per annum until final liquidation of same.

“An order that any Judgement sum awarded against the Defendant inclusive of interest thereon shall, within 3 days of delivery of the Judgment, be paid into the 1st Plaintiff’s account below: Account Name: MicCom Cables & Wires Ltd; Bank: Keystone Bank Limited Account Number: 1006178177.

“Solicitors Cost of this action calculated at 15percent of whatsoever monetary judgement this Honourable Court makes.”

In its opposition to the reliefs sought by the Plaintiffs, Access Bank in had urged the court to dismiss the suit for being unsubstantiated and frivolous.

In the judgement on the suit delivered penultimate week, Justice Allagoa, after reading through all the processes filed by the parties and submissions made by their counsel, ordered:
“that a declaration is made that the alleged debit balance on the 1st Plaintiff’s account No: 0004842444 maintained with the Defendants is an aggregate of the imputation of excessive debits, unwholesome charges, compound interest, overcharges and all other illegal and unauthorised charges and interests imputed in the 1st Plaintiff’s Account contrary to the terms of Offer Letters dated 24th May, 2006, 20th September, 2006, 6th April, 2010, 24th December, 2010, and 18th March, 2013 are illegal, null and void.

“A declaration is made that the unilateral variation of interest applied by the Defendant through its officials without the formal consent and approval of the 1st Plaintiff is illegal and ought to be set aside.

“A declaration is made that all charges inconsistent with the Offer Letters dated 24th May, 2006, 20th September, 2006, 6th April, 2010, 24th December, 2010, and 18th March, 2013 are illegal, null and void.

“A declaration is made that the unauthorized, illegal, excessive and unsubstantiated charges, fees, interests, or deductions levied or charged to the accounts of the 1st Plaintiff by the Defendant amounts to a fundamental breach and the 1st Plaintiff is entitled to treat same as repudiatory and to rescind from the credit facilities agreement constituted in the Offer Letters dated 24th May, 2006, 20th September, 2006, 6th April 2010, 24th December 2010, and 18th March, 2013 are illegal, null and void.

“A declaration is made that the Defendant is not entitled to take any action and or exercise any rights whatsoever arising from any purported right contained in the Deed of Fixed and Floating Debenture, Deed of Mortgage Debenture and/or Tripartite Legal Mortgage in respect of the properties pursuant to the Offer Letter dated 18th March, 2013 towards recovery of the alleged debt of N452,994,359.45 million, or any debt allegedly owed by the Plaintiffs to it whether as primary or secondary debtors.

“A declaration is made that by virtue of CBN prudential guidelines, the Defendant is under an obligation to reconcile the account of the 1st Plaintiff with the 1st Plaintiff’s auditors and render full and proper account of how funds deposited into, credited to or otherwise due and accruing to the 1st Plaintiff has been managed and applied in respect of the account maintained by the 1st Plaintiff, failing which the defendant is bound by the audit conducted by the 1st Plaintiff.

“An order is made that the Defendant should reverse, deduct or otherwise cancel all unauthorized, illegal, excessive and unsubstantiated charges, fees, interests, of deductions howsoever called which have been levied or charged to the accounts of the 1st Plaintiff’s.

“An order is granted for the immediate refund of the sum of N317, 690, 415.65 million, representing unlawful excess and undue interests charges together with interest calculated thereon at the prevailing Central Bank of Nigeria MRR/MPR rates in line with Section 3.3.5 of the CBN Monetary Credit Foreign Trade & Exchange Policy Circular No. 40 of January, 2014.

“Flowing from above, judgement in the sum of N317,690,415.65 million, as already pleaded is granted.

“A declaration is made that the overdraft interest, commission on turnover, facility fee, management fee other fees, access online fee, balance on comm. plus vat BA repayment and interest, loan repayment and interest, import charges are all illegal and excessive charges.

“An order of perpetual injunction is granted restraining the Defendant either by itself, servants, agents or privies howsoever called from exercising any right whatsoever purportedly conferred by the Deed of Fixed and Floating Debenture, Deed of Mortgage Debenture and/or Tripartite Legal Mortgage in respect of the properties pursuant to the Offer Letter dated 18th March, 2013.

“An order of perpetual injunction is granted restraining the Defendant either by itself, servants, agents or privies howsoever called from exercising any right whatsoever purportedly conferred under and by virtue of the Personal Guarantee of the 2nd Plaintiff pursuant to the Offer Letter dated 18th March, 2013.

“An order of injunction is granted restraining the Defendant whether by itself, officers, servants, agents and or privies from selling, disposing of or otherwise exercising any right in respect of the properties known as: Plot 2018 Cotonou Street, Wuse Zone 6, Abuja, 21 Odebunmi Street, Egbeda, Lagos, 3 Ponle Street, Egbeda, Lagos, 3/5 Edun-Alaran Road, Ojokoro Agege and 1 Ramat Crescent, Ogudu GRA, Lagos.

“An order of perpetual injunction is granted restraining the Defendant, its agents or privies howsoever called from harassing, disturbing or otherwise interfering howsoever with the proper running of the commercial operations of the 1st Plaintiff.

“An order of perpetual injunction is granted restraining the Defendant whether by itself, agents, privies or whomsoever acting upon or at the instigation or directives of the Defendant from making or attempting to make representations and/or complaints concerning the 1st and 2nd Plaintiffs account to third parties and/or imputing the financial statement of the 1st and 2nd Plaintiffs or howsoever into the Credit Risk Management System of the Central Bank of Nigeria.

“An order of perpetual injunction is granted restraining the Defendant from howsoever causing the arrest and/or detention of any of the officers or directors of the 1st and 2nd Plaintiffs on account of any alleged indebtedness arising from the credit facilities agreement constituted in the Offer Letters dated 17 May, 2007, 18th March, 2013.

“Damages in the sum of N1 billion, resulting from the reputational injury and damage to business suffered by the 1st Plaintiff and loss of access to funds which would have yielded immense profits is hereby granted.

“Interest on all sums due above at the interest rate of 25% per annum from March, 2013 till date of judgement and thereafter at the rate of 10% per annum until final liquidation of same is hereby granted.”

“An order that any Judgement sum awarded against the Defendant inclusive of interest thereon shall, within 3 days of delivery of the Judgment, be paid into the 1st Plaintiff’s account below: Account Name: MicCom Cables & Wires Ltd. Bank: Keystone Bank Limited. Account Number: 1006178177.

“Solicitors Cost of this action calculated at 15 percent of whatsoever monetary judgement this Honourable Court makes is hereby granted.”

In the same vein, Justice Lewis-Allagoa also made the following orders in the suit marked FHC/L/CS/1493/2015; “that a Declaration is made that the 1st Plaintiff is not indebted to the Defendant in the alleged sum of N1,058,141,649.98 billion andor any sum whatsoever.

“That a declaration is made that having not met the conditions precedent for a drawdown on the facility in the offer letter dated 20th August, 2014, the defendant has no right to open, operate, generate or debit an account on behalf of the Plaintiff.

“That a declaration that the fictitious account of the 1st Plaintiff opened and operated by the defendant is fraudulent and illegal.

“That a declaration is made that the unauthorized and illegal account opened by the Defendant on behalf of the 1st Plaintiff amounts to a fundamental breach and the 1st Plaintiff its entitled to treat same as repudiatory and to rescind from the credit facility agreement constituted in the Offer Letter dated 20th August, 2014.

“That a declaration is made that the action of the defendant in promptly collapsing the unreconciled purported indebtedness of the 1st Plaintiff into the fictitious and illegal account of the 2nd Plaintiff was accentuated by the desire for illicit profit and to avoid provision for it in its audited account.

“That an order directing the immediate closure of the illegal and fictitious account of the 1st Plaintiff opened and operated by the Defendant.

“That an order directing the defendant to forthwith unconditionally release to the Plaintiffs, all title documents of the properties used to secure the purported facility and or An Order discharging all security documents used as collateral for the purported facility.

“That an order of perpetual injunction is granted restraining the Defendant either by itself, servants, agents or privies howsoever purportedly conferred under and by virtue of the Personal Guarantee of the 2nd Plaintiff pursuant to the Offer Letter dated 20th August, 2014.

“That an order of perpetual injunction is granted restraining the Defendant its agents or privies howsoever called from harassing, disturbing or otherwise interfering howsoever with the proper running at the commercial operations of the 1st Plaintiff.

“That an order of perpetual injunction is granted restraining the Defendant whether by itself, agents, privies or whomsoever acting upon or at the instigation or directives of the Defendant from making or attempting to make representations and/or complaints concerning the 1st Plaintiff account to third parties and/or imputing the financial statement of the 1st Plaintiff or howsoever into the Credit Risk Management System of the Central Bank of Nigeria.

“That an order of perpetual Injunction is granted restraining the defendant from howsoever causing the arrest and/or detention of any of the officers or directors of the 1st Plaintiff on account of any alleged indebtedness arising from the credit facility constituted in the Offer Letter dated 20th August, 2014. And General damages in the sum N500 million.”

Justice Allagoa also ordered that the judgement sum awarded against the defendant (Access Bank), inclusive of interest thereon shall, within 3 days of delivery of the judgement, be paid into the 1st Plaintiff’s account details; Account Name: Origin Limited. Bank; Keystone Bank Limited. Account Number: 1006707643.”