Court orders Union Bank to refund N34million to firm

Justice Obadina of a Lagos High Court has ordered Union Bank of Nigeria Plc to pay N34 million ($217, 381.05) to one Prince Nwokocha Ezikpe and his company Felimex Nigeria Limited, being the total sum of money debited from the claimants’ account.

The court held that the money debited from the claimants’ account with Union Bank was not remitted as expected as payment for the series of transactions between the claimants and their foreign business partners.

Justice Obadina held that Union Bank did not supply any documentary proof from its own record of remittance of the funds to the Central Bank of Nigeria.

‘’No bank entries, email correspondence, letter, fax messages or any document to trace the movement of the funds from the defendant to the CBN was pleaded or tendered’’, the court held.
Therefore, Justice Obadina held that the claimant’s established their entitlement to the reliefs sought as the funds debited from their count were meant for remittance to the CBN and to their foreign partners were not remitted.

Justice Obadina stated further that contrary to the submissions of defendant’s counsel in his address, the claimants were not relying on the weakness of the defence in establishing their claim.
She maintained that the burden of proof of the remittance was on the defendant and that the defendant failed to discharge that burden.

She stated ‘’it is my finding that the claimants are entitled to judgment. I enter judgment for the claimants for the sum of USD 217, 381. 05 or its naira equipment at the prevailing exchange rate being the sum of money debited from the claimants’ account held with the defendant which the defendant did not remit as expected as payment for series of transactions between the claimants’ and their foreign business partners.’’
Consequently, the court awarded the sum of N3 million in favour of the claimants for breach of contract and for money received since 1983.

However, Justice Obadina refused the request of the claimants for an interest of 19 percent at prevailing exchange rate.

The case of the claimant is that Felimex Merchantile Nigeria Alliance and Sobatex International operated an account with the Aba branch of the defendant in the name of Felimex Merchantile Nigeria Alliance.
The two enterprises were later incorporated into a limited liability company known as Felimex Nigeria Limited.
In the course of normal banking relationship the claimants’ account was debited in the sum of $217, 381.05 in seven installments for remittance to the Central Bank of Nigeria (CBN) for goods imported by Felimex Merchantile Nigeria Alliance.

It was further alleged that the funds were not remitted to CBN as agreed and the claimant requested for proof of remittance as CBN denied receiving the remittances.

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