N93m Debt: Court Grants Order Against NF Branding, Two Others

 

A Federal High Court sitting in Lagos has granted leave to a financial firm, Fundquest Financial Services Limited, to foreclose and sell, a property situated at 42, Adeoye Adeyemi Street, Peace Estate, Maryland, and owned by NF Branding Nigeria Limited over an unpaid debt of N93m.

Justice Lewis Allagoa granted the order while delivering judgment in a suit filed by the plaintiff, Fundquest Financial Services Limited against the defendants, NF Branding Nigeria Limited, Olufela Joseph Seton and Oduola Oladele.

The judge who heard the application filed by the counsel to the plaintiff, Adetunji Adedoyin-Adeniyi, also declared that the defendants’ failure to liquidate their indebtedness to the plaintiff, has crystallized the Plaintiff’s power of sale with regards to the property which was pledged as security to partly secure the facility granted to the first Defendant by the Plaintiff.

The judge also declared that the second and third defendants’ failure to comply with the terms of the Guarantee and Indemnity bonds dated May 17, 2021 and June 8, 2021, executed by each of them in favour of the Plaintiff by liquidating the first defendant’s indebtedness despite express demand for same, is a breach of the contract validly entered and consummated between the Plaintiff and the second and third defendants respectively.

The court’s order mandates, compels and directs the Defendants to forthwith liquidate their outstanding indebtedness to the Plaintiff, in the total sum of N93,071,739 as of March 21, 2022; by virtue of the Working Capital Facility Line in the total sum of N70 million offered to the 1st Defendant and Personally Guaranteed by the 2nd & 3rd Defendants vide the Plaintiff’s offer letters dated 14th May, 2021 and July 8, 2021, at a contractual interest rate of 3.00% flat per month.

During the pendency of the suit, the defendants failed and refused to file any counter to the suit despite being served with all processes and Mareva injunction earlier granted by the court.

Delivering judgment in the suit, Justice Lewis-Allagoa held that: “I have examined the originating processes filed pursuant to this application including all the exhibits attached to the affidavit and I note particularly that the defendants despite service upon them of the Originating processes in this matter has either neglected or failed to file any counter affidavit and the law is trite that where an affidavit is filed ascertain to facts therein contained and other party has failed or neglected to file any counter affidavit with a view of controverting or challenging the averment in the affidavit, those averment in the affidavit which are unchallenged and deem to have been admitted by the other party and the Court is bound to act on it.

“Consequently, I also have no reason to question the argument of counsel pursuant to those averments in the affidavit, the originating summons has merit and all the prayers therein are hereby granted as prayed.”

Prior to the judgment, Justice Lewis-Allagoa had on November 25, 2022, made Mareva order against the defendants, restraining all banks in Nigeria from releasing, further releasing or dealing in any manner whatsoever with any and all monies and/or whatsoever assets due to the defendants/respondents from any account whatsoever maintained by the defendants/respondents and also all accounts with BVN: 22143301293 {2nd Defendant) their agents, privies, subsidiaries, sister companies or the like with any of the said Banks wherever situate up to the amount of the Plaintiff/Applicant’s total claim in the sum of N93,071,739.7 million, being the balance outstanding on the first defendant/respondent’s account with the plaintiff/applicant as at of March 21, 2022, in respect of the restructure time loan facility granted to the first defendant/respondent by the Plaintiff/Applicant and guaranteed by the second and third defendants/respondents, pending the hearing and determination of motion on notice.

The court also made an order of Mareva injunction restraining the defendants/ respondents, the directors of the first defendant/respondent, their agents, servants, officers, privies, subsidiaries, sister companies or any other person natural or artificial howsoever called under the control of the defendants/respondents from transferring or otherwise dealing with any and all of the monies standing to the credit of the Defendants/Respondents in any account whatsoever maintained by the defendants/Respondents with any of the aforementioned Banks wherever situate up to the amount of the plaintiff/applicant’s total claim of the sum of N93,071,739.7 million, as at March 21, 2022 being the debit balance outstanding on the first defendant/respondent’s account with the Plaintiff/Applicant as at March 21, 2022 in respect of the restructure time loan facility granted to the first defendant/respondent by the plaintiff/applicant and guaranteed by the second and third defendants/respondents, pending the hearing and determination of the motion on notice.

“That an Order of this Honourable Court is granted restraining the Defendants/ Respondent from selling, transferring, assigning and/or dealing with any properties of the defendants/respondents that can be traced and located by the Plaintiff/Applicant including the property situated at No 42, Adeoye Adeyemi Street, Peace’ Estate, Maryland, Lagos, belonging to the 2nd Defendant and pledged by him as security to the facility granted to the 1st Defendant by the Plaintiff, during the pendency of this suit.

“That an Order is granted directing the above-named Banks to file and serve on the Plaintiff/Applicant’s Counsel within 7 days of service of the order on them, an affidavit disclosing the balance on the Defendants/Respondents’ accounts whatsoever maintained with the Banks as at the date of the Order.

“That an Order of this Honourable Court is made granting leave to the Plaintiff/Applicant to serve the following processes, to wit: Originating Summons, Affidavit in support of the Originating summons with accompanying Exhibits (Collectively “the originating processes”) the Motion on Notice for Mareva injunction; and all other processes that may be issued in this suit on the second, and third defendants by way of substituted service; pasting on the conspicuous part of No. 3, Bayo Dejonwo Close, Maryland, Lagos (2 Defendant), and No 7, llobu Street, Old Oko Oba, Agege, Lagos (third defendant).”