Famous street musician, Habeeb Okikiola, popularly called Portable, has remained in police custody for failing to meet the bail conditions for his release.

DAILY POST had reported that he was arrested for allegedly refusing to pay the N14 million debt he incurred when he bought a G-Wagon from a car dealer in Lagos State.

According to the Lagos State Police Command’s spokesman, Benjamin Hudenyin, the singer will remain in detention pending when he’s able to produce a reliable surety before he can be granted bail.

“He has presented no reliable surety yet so he (Portable) is still with us,” Hundeyin said.

The law has provided for a lawful process and procedure for debt recovery in Nigeria.

To start with, owing debt is a civil wrong, and not criminal wrong. Thus, the Police and other security agents may not have the power to arrest a debtor except the debtor, through the commission of a crime incurs such debt.

Some of the lawful methods and options to recover a debt in Nigeria include the followings:

1 Procedure agreed on by both parties in their agreement: It cannot be overemphasized that an agreement should always be drafted when parties are getting into any form of contract, especially when it involves payment from one party to the other. The parties are allowed to include how any obligation or resulting debt owed to another party can be enforced or recovered in their agreement upon a breach by either party. They may resort to using the procedure they have chosen to follow under the agreement, which may include arbitration or any other alternative dispute resolution. The parties may resort to using a neutral third party in resolving the issues if stipulated in the agreement. It could be by way of mediation, which will involve bringing a mediator to help resolve the issues.


2 Litigation: It is the Court that has the power to hear and determine an action for debt recovery and enforce payment against a stubborn debtor. A lawyer acting on behalf of the creditor will commence a debt recovery action and for damages for breach of contract. The lawyer may also bring an application for the preservation of the moveable and immoveable property of the debtor pending the final determination of the court proceedings. Where the debtor is a company, a winding-up proceeding may be commenced along with the action for Summary Judgment against the debtor. It is trite law that in an action for the recovery of debt, the cause of action accrues upon demand for the payment of the debt. Where no demand is made, a cause of action does not arise and no action can be commenced in court. So until such a letter of demand is issued, no right of action would arise and accrue to enable commencement of legal action in a Court of law for the recovery of the debt in question. In the case of Hung v. E.C. Invest. Co. Nig. Ltd, it was held, that: – “In a claim for recovery of a debt, the cause of action accrues when a demand is made and the debtor refuses to pay.”

Upon consultation with the Lawyer, the Lawyer is expected to write a letter to the debtor demanding the funds owed, warning about dire consequences if payment is not received on or before a stipulated date. A letter of demand serves as a pre-action notice for a debt recovery proceeding. The debtor may pay up or negotiate an instalment payment once he or she has received a demand notice.

https://www.resolutionlawng.com/procedure-for-debt-recovery-in-nigeria/

Odewaleadesoye:


DAILY POST[/font]

Kudi2012:
He may know what's he's doing