Sterling Bank Commences Bankruptcy Proceeding Against Lagos businessman, Jaiyesimi Posted by: Demola Abimboye July 9, 2019 Leave a comment By Our Reporter A Federal High Court, Lagos, has restrained a Lagos businessman, Adeniyi Adebulugbe Jaiyesimi, who resides at 16 Wesley Close, Friends Colony Estate, Lekki and carries on business at Donex Technical Services Ltd. as the Managing Director of the company, from operating, withdrawing from or dealing with his funds in any bank or financial institution within Nigeria pending the hearing of the Bankruptcy suit filed against him. The order of the court was sequel to a bankruptcy petition filed by Sterling Bank Plc against Mr Jaiyesimi as a debtor pending before the Court. Mr jaiyesimi was alleged to have severally borrowed huge sums of money from Magnum Trust Bank now Sterling Bank Plc. since the beginning of 2003 and refused to repay the loan for so many years, thereafter the bank obtained judgment against him in a suit CV/1208/2009 filed before the High Court of the Federal Capital Territory, Abuja in the sum of N90,640,095.74 with a 10% interest until liquidation. However, since June 8, 2009 when the judgment was delivered, Mr. Jaiyesimi has refused to pay the judgment sum despite various efforts of the bank in this regard. The bank was therefore left with no other option than to issue bankruptcy proceedings against him before the Federal High Court, Lagos in suit FHC/L/BK/3/2019. According to the Bankruptcy Act, when there is a judgment against any person for money and a Bankruptcy notice is served on him to pay, settle or arrange for the loan within 14 days of service of the Bankruptcy Notice, if such a person fails to pay, settle or arrange for the loan to be repaid within the 14 days period, then such a person has committed a Bankruptcy Act and a Bankruptcy Petition can be issued against him. Consequently, a Bankruptcy Notice was served on Jaiyesimi on 12th of April 2019 and following his refusal to do the needful, the Bank issued the Bankruptcy petition against him on 23rd of May 2019. Sterling Bank is seeking from the court an order declaring the debtor bankrupt and consequential orders as follows: • Empowering the bank to sell the debtor’s properties be it landed or chattels where-ever situate /or found including but not limited to his shares wherever they are held either by private treaty or by Public auction advert of which shall be published in two widely read Nigerian National Dailies. • An order granting leave to the bank to appropriate or otherwise utilize the properties, investments, shares or other interests of the debtor whenever found and in all the companies /corporate entities in Nigeria, in capital or full satisfaction of the debt due. • An order permitting/allowing the Creditor to apply the proceeds from the sale of the Debtor’s properties chattels, chooses in action or interest towards liquidating his indebtedness to the bank. Meanwhile, the presiding judge, Mohammed Liman, while adjourning till 17th October 2019 for further hearing, granted Sterling Bank’s prayer seeking to freeze all the assets and funds of Mr. Jaiyesimi wherever they may be found particularly those in the custody of banks. 2019-07-09 Demola Abimboye Share !