Court orders Unity Bank to pay N10m damages to Denki Wire & Cable

An Ondo State High Court sitting in Akure, on Friday, ruled in favour of Denki Wire and Cable Nigeria Limited, saying it could not be indebted to the tune of N51 million to Unity Bank Plc.

Our correspondent reports that the bank had dragged the company to court for breach of contract.

Justice O. Osadebayo, while delivering her judgment, also said that the building used as collateral for the N10 million loan obtained from the bank be released to the claimant, Engr. E. O. Adewumi.

The judge also said that the act of removing N25 million from the N60 million CBN intervention fund awarded to Denki Wire and Cable Nigeria Ltd. by Unity Bank Plc was illegal.

“The sum of N60 million intervention fund be made available to Denki Wire and Cable Nigeria Ltd. forthwith,” the judge ordered.

Earlier, Mr Oladimeji Adams, Counsel to the claimant, had told the court that the company had secured the sum of N10 million as overdraft from the bank.

He said that when the overdraft was secured, Unity Bank was known as First Interstate Bank Plc, adding that the amount was advanced to the company.

Adams explained that when the claimant noticed some discrepancies from the bank, it hired the services of a consultant, who discovered that the bank was overcharging the claimant.

He said that while the case was ongoing, CBN released N60 million intervention fund to the company through Unity Bank, out of which a sum of N25 million was unilaterally withdrawn from the account by the bank without the knowledge of the claimant.

He said that when the company approached the bank, it was also denied access to the remaining N35 million that made up the N60 million intervention fund from CBN.

Adams, who spoke with newsmen shortly after the judgment commended the court verdict, said it was a good omen for industrialists in the state, who had, for long, been subjected to ridiculous charges and undue discrepancies by banks.