Union Bank In Trouble Over N119.7 Million Debt
The Lagos State High Court in Ikeja has issued a summons to Union Bank Plc., requesting an explanation regarding a disputed debt of #119,773,826 between the bank and a multinational company called Ravih Abdul and Co., Limited. This comes amidst rumors of Union Bank’s intended acquisition of minority shareholders by Titan Trust Bank Limited.
While a specific hearing date has not yet been scheduled for the case, the court has instructed the bank to submit its defense within a period of 42 days.
Ravih Abdul and its managing director, Mr. Adekunle Abdul, approached the court seeking to compel Union Bank to settle an amount of 3119,773,826, which they claim is the total accumulated debt. The company and its director assert that the bank’s indebtedness spans from November 1994 to December 2022 and pertains to the arrears of accumulated interest.
In a lawsuit filed on May 26, Abdul, the managing director of Ravih Abdul, stated that the bank had received 5,240 pounds sterling as payment for the required fees to process the Letter of Credit but had failed to utilize the funds for the intended purpose. He further alleged that the bank had not provided the claimants with the accumulated interest generated on the money during the period between November 1993 (when the Letter of Credit expired) and September 1994, while the money remained in the bank’s account without being paid to the beneficiary. This amounted to 1,008.77 pounds sterling that should have accrued to the claimants.
Abdul emphasized that the bank has yet to explain what happened to the accumulated interest on the funds, which were deposited with them for an extended period beyond the three-month period specified in the Letter of Credit after revalidation, during which the money was not used for its intended purpose.
The claimants assert that they had previously sent letters demanding payment of the outstanding amount to the bank. Copies of these letters, dated September 26, 2022, November 4, 2022, and January 11, 2023, were submitted as evidence.
Consequently, Ravih Abdul and its managing director, Adekunle Abdul, are seeking a sum of 220,838.74 pounds sterling (approximately #119,773,826) as the total accumulated debt from the defendant, comprising arrears of accumulated interest on the claimants’ account with the bank from November 1994 to December 2022.
In the meantime, the court has directed Union Bank Plc. to file its defense within 42 days concerning the alleged debt of 3119,773,826.
The court’s directive reads as follows: “You are hereby commanded that within 42 days after the service of this writ on you, inclusive of such service, you do cause an appearance.”
