The Ondo State High Court sitting in Akure has ordered a Commercial bank “Polaris Bank Plc”, to pay the Ondo state government’s Ministry of Local Government and Chieftancy Affairs a sum of Two Billion Naira (N2, 000,000,000.00) as damages against the bank for breach of the banker/customer’s contract, dealing with the ministry’s account.
The court presided over by Justice Adegboyega Adebusoye, held that the bank violated and contravened the Banks and other Financial Institutions Act, Central Bank Monetary Policy Guidelines and the Central Bank of Nigeria Circular and Financial Regulations and other Laws and Policies regulating customers’/bankers’ relationships.
The State Attorney General and the Ministry through their lawyer, Barrister Olusegun Akeredolu, had on 30th March, 2017 in suit number: AK/75/2017, among other prayers, dragged Polaris Bank Plc to the court alleging and seeking payment of damages and refund of accumulated excess bank charges, double deduction from abnormal dealing on the bank account of the ministry in the bank.
The Bank through its lawyer, Barrister Toyese Owoade had countered the claims and both parties advanced many evidence and called witnesses to prove their arguments, but however in a judgment delivered on 20th June, 2022, Justice Adebusoye ruled that “the power of this court to award post judgment interest has been expressly donated by Order 21 rule 11 of the Ondo State (Civil Procedure) Rules.”
“In sum therefore, I am of the view and so hold that the claimants have proved their claim as required by law on the preponderance of evidence and balance of probabilities and same has thus succeeded in part with judgment declared in this suit as follows;
“A DECLARATION that the defendant is liable to the claimants in damages against the defendant for breach of the banker/customer contract, dealing with the 2nd claimant’s account in violation and contraventions of the Banks and Other Financial Institutions Act, Central Bank Monetary Policy Guidelines and the Central Bank of Nigeria Circular and Financial Regulations and other Laws and Policies regulating customers’/bankers’ relationships.
“AN ORDER entering judgment for the claimants against the defendant under the following headings:
“(i) N92,894,807.52(Ninety-Two Million Eight Hundred and Ninety-Four Thousand Eight Hundred and Seven Naira Fifty Two Kobo Only) being #2.0 Million and N1,227,398.58 cheques debited twice plus accrued penal interest thereon in accordance with section 3.2.5(g) of the Central Bank of Nigeria’s Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2016/2017;
“(ii) N70,666,702.32 (Seventy Million Six Hundred and Sixty-Six Thousand Seven Hundred and Two Naira Thirty-Two Kobo Only) being accrued penal interest shortfall on the N6.4 Million cheque debited twice and excess manager cheque charges in accordance with section 3.2.5(g) of the Central Bank of Nigeria’s Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2016/2017;
“c. AN ORDER entering judgment for the claimants against the defendant in the sum of Two Billion Naira (N2, 000,000,000.00) as damages against the defendant for breach of the banker/customer’s contract, dealing with the 2nd claimant’s account in violation and contraventions of the Banks and other Financial Institutions Act, Central Bank Monetary Policy Guidelines and the Central Bank of Nigeria Circular and Financial Regulations and other Laws and Policies regulating customers’/bankers’ relationships.
“d. AN ORDER of 10% interest on the judgment sum from the day of judgment till the judgment sum is liquidated (and) I also award N250,000:00 as cost against the defendant,” the judge held.
