N198million Debt: Court Orders Attachment Of Derilar Company And Directors’ Accounts

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A Federal High Court in Lagos has ordered the immediate attachment of funds belonging to an Ibadan based company, Derilar Enterprises Nigeria Limited to the tune of N198,061,091.61

Also affected by the order are the accounts of the company’s managing director and alter ego of the company, Chief Dele Ajayi, and two Directors of the company – Mrs. Adenike Ajayi and Mrs. Omolara Ajayi who are also shareholders of the company.

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The presiding Judge, Lewis Allagoa, also ordered that the Asset Management Corporation of Nigeria, AMCON, should take interim possession of the two properties used as collateral for the loan:

  • 1.Plot No. 378, Area A2 Wuse I District, FCT covered by a certificate of occupancy No. FCT/ABU/OY.57 registered as No. FC 22 at page 22 in volume 18 of the Land Registry Office at Abuja.
  • 2. Property of Chief Dele Ajayi at Iwo Road, Ibadan, Oyo state covered by a Deed of Assignment registered as No. 8 at page 8 in volume 2576 of the Land Registry office at Ibadan.

The order of the court was as a result of an application accompanied by an affidavit sworn to and filed before the court on behalf of AMCON by a Lagos lawyer Barrister John Duru.

Duru averred that Derilar Enterprise Company, is a company duly registered under the laws of Nigeria with its address at N5/871H Opposite Express Over-Head Bridge, Iwo Road Ibadan, Oyo State and was a customer of Trans International Bank Plc (now Heritage Bank). On October 24, 2000, upon application of the company a loan facility of N40,000,000 (forty million naira), was granted to the company by Trans International Bank Plc (now Heritage Bank).

The purpose of the loan was to finance execution of contract awarded by the Osun State Government to the company “for the construction of ‘Type B’ New Secretariat Complex in Osogbo”

The tenor of the facility was for a ten (10) month – period and the above properties were used as collateral for the credit facility.

The Defendants, however, defaulted in repaying same. Consequently, the Bank wrote and sent out several letters demanding the Defendants to liquidate their debt but they failed and/or neglected to do so.

As a result of the default, the loan facility became toxic and was subsequently acquired as Eligible Bank Asset (EBA) AMCON by virtue of its statutory powers and functions.

By virtue of the purchase, the AMCON is statutorily empowered to administer and recover the loan from the Defendants.

AMCON sent demand notices to the Defendants to repay their debts arising from the loan facility granted them. The Defendants’ letters dated 4th July 2014 and 30th September 2014, addressed to the Plaintiff, acknowledged being indebted to the Plaintiff and sought time to offset same.

However, after series of meetings and negotiations with the Plaintiff, the Plaintiff restructured the loan with the Defendants to the tune of N60,000,000.00 (Sixty Million Naira) as full and final settlement of the debts.

By the terms of agreement, the Plaintiff made it clear to the Defendants that if they defaulted in paying the agreed N60million within the stipulated period being 30th September 2014, the Plaintiff reserved the right to revoke the restructured payment proposal and demand for the entire outstanding sum of N198,061,019.61 (One Hundred and ninety eight million, Sixty One Thousand, nineteen naira and Sixty-one kobo).

That the Defendants however, failed and/or neglected to repay the debts despite the concessions from the Plaintiff.

The Plaintiff claimed that the default of the Defendants has caused serious financial and economic consequences on the activities of the Bank and its customers, who were the actual owners of the money.

It stated that the current debts of the Defendants amount to the sum of N198,061,019.61.

The Plaintiff deposed that it was desirous of recovering the above sum and also desirous of taking possession of the all assets of the Defendants with the assistance of the Police, Sheriffs and Bailiffs of the Court pending the determination of the substantive suit.

The Plaintiff averred further that noting the protracted default of the Defendants to liquidate their indebtedness, it has become manifest that except the Court intervened the Defendants will tarry in their default therefore, it is needful for the court to restrain the Defendants as well as listed banks from removing, deducting, transferring or howsoever tampering with any funds, shares or instruments standing to the credit of the Derilar company.

AMCON claimed that unless the court grants this application, there is real and imminent danger of the Defendants removing from jurisdiction or dissipating the assets thereby making the recovery process of the Plaintiff frustrated.

The Plaintiff claims against the Defendants are as follows:

  • An order directing the defendants to pay the sum of N198,061,019.61 (One Hundred and ninety-eight million, Sixty-One thousand, Nineteen naira and Sixty-one kobo) being their outstanding indebtedness to the Plaintiff.
  • An order directing the Defendants to pay post judgment interest at the rate of 15% per annum from the date of judgment, till the final liquidation of the entire sum.
  • Cost of this action in the sum of N5,000,000.00 (Five Million Naira).

Justice Allagoa, after hearing the submission of David Idang, counsel for the plaintiff moved in terms of motion paper, ordered as follows:

  • That the order of this court granting leave to the plaintiff to take interim possession of the properties of the defendants at :
  • Plot No. 378, Area A2 Wuse I District, FCT covered by a certificate of occupancy No. FCT/ABU/OY.57 registered as No. FC 22 at page 22 in volume 18 of the Land Registry Office at Abuja.
  • Property of Chief Dele Ajayi at Iwo Road, Ibadan, Oyo state covered by a Deed of Assignment registered as No. 8 at page 8 in volume 2576 of the Land Registry office at Ibadan which were transferred via a deed of legal mortgage by the defendants to Enterprise bank and Intercontinental bank which AMCON purchase from the bank.
  • Any other landed, movable, immovable, tangible, intangible, traceable assets within Nigeria, whenever found or situate within Nigeria pending the hearing and determination of the substantive suit.
  • An interim order is granted mandating all the 27 banks and other financial institutions to disclose detailed banking, financial, and commercial information of the defendants within 7 days of service of the order on them.
  • An order is granted freezing and attaching the various banks account of the defendants to the tune of N198,061,019.61 domicile in 27 banks listed before the court pending the determination of the substantive suit.
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