Whoever issued this Press statement on behalf of GTB either doesn't understand the meaning of Garnishee proceeding or he thinks Nigerians don't. Either way, this is a very weak attempt at obfuscation. I'm referring to the 3rd paragraph where GTB claimed the Nigerian Custom Service is the entity against whom the execution of the garnishee order is directed.

That is not exactly correct.

To be clear, I have little interest in the legal gymnastics involved in this case since I am not a lawyer. I believe the court is already doing justice to that. I am only interested in the academic part of this case in order to ensure that no matter which camp you belong to, if you are 'chuucking' your mouth, you will be doing it from the position of understanding.

Innoson has two court cases with the GTB, one is about the criminal deduction from the account he has with the Bank and the second one is a Garnishee proceeding instituted by Innoson as the judgement creditor and the GTB as the third party in whose custody funds belonging to the judgement debtor (Customs) is domiciled.

First, let us understand what Garnishee proceeding is.

In a simple layman English, Garnishee Proceedings is a Legal Action in which a court directs a Third Party (known as the Garnishee) that has in its possession monies or other money instrument belonging to or accruable to one who is owing another (judgement debtor) to pay that money to the person being owed known as the judgement creditor. The 3rd party here could be an Employer who has in his/her possession salaries accruable to the judgement debtor. For example, if Charles Ogbu owes a woman who sells achicha close to his office and refuses to pay, she may decide to institute a garnishee proceeding where the court will force Charles Ogbu's Employer to channel Charles' salaries to her until the judgement debt owed by Charles is liquidated in full. If my Employer fails to abide by the garnishee order and the woman goes back to court to get a Writ of Execution, it will be fully enforced, NOT AGAINST ME (Charles) who is owing but against my employer (the Garnishee) who will now be treated by the court as the debtor.

But in most cases, the Third Party is usually the Banks where people keep money as is the case here.

In 2004, during the government of Chief Olusegun Obasanjo, the Nigerian Custom Service seized goods legally imported by Innocent Chukwuma, the chairman of Innoson and went further to auction off the goods. Innoson took Customs to court claiming damages and won but the Custom Service refused to pay him the money as ordered by the court. He (Innoson) then located Customs account with the GTB which has enough funds to settle the judgement debt and instituted a Garnishee proceeding with GTB as the third party known as the Garnishee but the Bank REPORTEDLY connived with the Nigerian Custom service and released the fund already covered in the garnishee proceeding to the Custom. By allegedly conniving with the judgement debtor (the Customs), GTB, in the eye of the law, has ceased being a Third Party but has automatically become the judgement debtor against whom the Writ of Execution must be implemented in full.

Now, there is a little confusion here: In its Press statement released yesterday, Innoson Vehicles claimed its Writ of Fi Fa (a legal document by which assets belonging to a judgement debtor may be seized) with which it sealed off some GTB branches in Anambra state yestarday, is in connection with the illegal deduction case while the GTB in its own statement below is claiming the action of Innoson is in respect of a Garnishee proceeding against the account of the Nigerian Customs domiciled with the Bank and not against the Bank as an entity.

If Innoson is sealing off GTB branches with a Writ of Fi Fa, it is illogical to claim it is in respect of a Garnishee proceeding against the account the Nigerian Customs Service has with the Bank because Garnishee proceeding is mostly targeted at the third party holding money belonging to the judgement debtor in its possession. It must either be in respect of the illegal deduction case as claimed by Innoson or it must be in respect of the Garnishee proceeding in which GTB is the erring Garnishee who connived with the judgement debtor and is now being treated as the debtor. Either way, GTB is clearly being economical with the truth here.

I am deeply concerned about the rift between Innoson and GTB especially if supreme court has finally ruled out. That's the highest court in Nigeria. The window is closed for any room for appeal or out of court settlement. Take it from me, No Bank in Nigeria will cough out 8 billion naira and not shake. CBN placed the soludo consolidation at 25 billion naira for all banks. that's what is kept by CBN and its not meant for court cases but to secure shareholders in event of total collapse. MTN being being an afro- Asian brand far bigger than GTB was slammed by FG to pay a tax fee of 2.1billion dollars 3 years ago. Till today, MTN is still pleading to the government to pay 800 million dollars and spread it in 3 years. GTB may have 8 billion to pay spread in 10 years but they don't have it now. It doesn't always look as its posted at every financial year by commercial banks in Nigeria. Apart from buildings and cars, GTB largely have their money in other assets, stocks, Bond, Money market and Treasury bills. These monies are not easily accessible by banks as a lay man outside the industry would think.

It has become a media war now and the biggest loser her is GTB. The more GTB delays in finding a solution the more the interest increases, GTB is not losing money only but customers. The reputational damage is inexplicable. And I wonder why the legal team did not settle out of court after appeal court ruling. I remember appeal court asking GTB to produce the log book which they alleged that Innoson did not sign, they said it was burnt in their archive. They also said Innoson forged Bills of laden. In all this, GTB should have known that if anything goes wrong, they have a lot to loose. GTB is a PLC with share holders money. Where will they get 8 billion to pay for a court ruling. Where will they tell share holders they got the money to pay him from? You see, it's not a chicken change for GTB as many lay men will make you believe. Every kobo GTB will spend this year has been budgeted for and approved by the banks board. They couldn't have approved over 200 million for legal issues in 2019. Not possible. Most banks weigh their chances and settle out of court.

The owner of GTB is not Agbaje, he only has the largest share. GTB being a public limited liability company is owned by every Nigeria or foreigner who has a single share in that bank. If you are a share holder, will you allow your money to be given to another company?

I just listened to a video now where Innoson has given them an olive branch. He said, GTB told appeal court in an affidavit that if they pay him 8billion they will close shop. Innoson is saying, I don't want you to close shop, convert what you are owing me to shares.

The question is who has the largest share in GTB? Is the share up to 8billion? If the current highest share holder is less than 8 billion in cash value, that makes Innoson the highest share holder in the bank. If GTB practice preference of highest share in their governance book. Innoson automatically has an overwhelming influence in whatever happens in that bank going forward. His legal team may have studied all these to have issued a statement that they are taking over GTB except they pay him but I know they don't have that money to pay and the more they delay, the more interest is accrued. It's a delicate situation that defies logic.

I am concerned because this case is not good for our economy. Jobs will be lost.

GTB should approach innoson to negotiate the best way out. He seems ready for legal battles and it may not end well.

Nice piece...... You have said it all....their will definitely be a downsizing.... The only way out is to issue him the shares....

Gtb has the money but I'm suspecting they won't pay the money for 2 reasons.

1. The actual judgement debt is against the Nigerian Customs Service account with GTB. Now, if GTB pays it to Innoson, they would lose the NCS as a client. Mind you, the NCS generates hundreds of billions through the bank for the FG, it's a mega super client. Most likely their biggest client.

2. There are other matters with Innoson pending appeal. If they pay this one and Innoson loses that other case, Gtbank don fall mugu be that.

I guess No. 2 is the reason why Innoson has been stampeding Gtb to pay before that second matter is determined.

As for the shares, only an ignorant person would think Innoson is going to get shares in Gtb. Gtb is Nigeria's most profitable company. If they do a private placement today, I know of 3 people who can conveniently raise 12B to snap it all up.

Both parties are not giving the full facts, you have to distill it.

Thanks for the extensive explaination. If Innoson says hes d debt should b converted to shares i think he already weightd his chances, am just scared for GTB...dis whole action and inaction can lead to downzing in no time.

Good analysis of the issue.

Isn't it the Federal High court that ruled? Ehn OP

Gtb can still go to the supreme court. Correct me if I'm wrong

Lucid1:
Isn't it the Federal High court that ruled? Ehn OP

Gtb can still go to the supreme court. Correct me if I'm wrong

Innoson won at the Supreme Court, they only approached the federal high court to get a writ of fifa so they can take over some Gtb asset till they pay.

Read this :

The company also said that in a ruling delivered by Supreme Court,Justice Olabode Rhodes-Vivour dismissed GTB’s appeal and affirmed the concurrent judgment of both the Court of Appeal and the Federal High Court, Ibadan Division.

According to the ruling, court had, ordered GTB by to pay N2.4 billion to Innoson with a 22 percent interest, per annum, on the judgment until the final liquidation of the judgment.
“The Judgment debt of N2.4bn has accrued an interest of about N6,717,909,849.96 today, which results to about N8.8 billion,”

“Based on the Supreme Court’s decision of 27th February 2019 the counsel to Innoson , Prof McCarthy Mbadugha ESQ, approached the Federal High Court Awka Division for leave to enforce the judgment having obtained certificates of Judgment from the Ibadan Division of the Federal High court,” it said.

MrMcJay:
Gtb has the money but I'm suspecting they won't pay the money for 2 reasons.

1. The actual judgement debt is against the Nigerian Customs Service account with GTB. Now, if GTB pays it to Innoson, they would lose the NCS as a client. Mind you, the NCS generates hundreds of billions through the bank for the FG, it's a mega super client. Most likely their biggest client.

2. There are other matters with Innoson pending appeal. If they pay this one and Innoson loses that other case, Gtbank don fall mugu be that.

I guess No. 2 is the reason why Innoson has been stampeding Gtb to pay before that second matter is determined.

As for the shares, only an ignorant person would think Innoson is going to get shares in Gtb. Gtb is Nigeria's most profitable company. If they do a private placement today, I know of 3 people who can conveniently raise 12B to snap it all up.

Both parties are not giving the full facts, you have to distill it.

Can you read at all

In 2004, during the government of Chief Olusegun Obasanjo, the Nigerian Custom Service seized goods legally imported by Innocent Chukwuma, the chairman of Innoson and went further to auction off the goods. Innoson took Customs to court claiming damages and won but the Custom Service refused to pay him the money as ordered by the court. He (Innoson) then located Customs account with the GTB which has enough funds to settle the judgement debt and instituted a Garnishee proceeding with GTB as the third party known as the Garnishee but the Bank REPORTEDLY connived with the Nigerian Custom service and released the fund already covered in the garnishee proceeding to the Custom. By allegedly conniving with the judgement debtor (the Customs), GTB, in the eye of the law, has ceased being a Third Party but has automatically become the judgement debtor against whom the Writ of Execution must be implemented in full.

This should be on front page

Who exactly is in charge of Gtbs legal department. He or she should be sacked with immediate effect.

At this moment two things are obvious:

1. Innoson already won the case at the supreme court. Its final. No stories. So they will be paid eventually.


2. Gtb stands to lose money and goodwill. Either way, its bad news for Gtbank.

Built2last:
Whoever issued this Press statement on behalf of GTB either doesn't understand the meaning of Garnishee proceeding or he thinks Nigerians don't. Either way, this is a very weak attempt at obfuscation. I'm referring to the 3rd paragraph where GTB claimed the Nigerian Custom Service is the entity against whom the execution of the garnishee order is directed.

That is not exactly correct.

To be clear, I have little interest in the legal gymnastics involved in this case since I am not a lawyer. I believe the court is already doing justice to that. I am only interested in the academic part of this case in order to ensure that no matter which camp you belong to, if you are 'chuucking' your mouth, you will be doing it from the position of understanding.

Innoson has two court cases with the GTB, one is about the criminal deduction from the account he has with the Bank and the second one is a Garnishee proceeding instituted by Innoson as the judgement creditor and the GTB as the third party in whose custody funds belonging to the judgement debtor (Customs) is domiciled.

First, let us understand what Garnishee proceeding is.

In a simple layman English, Garnishee Proceedings is a Legal Action in which a court directs a Third Party (known as the Garnishee) that has in its possession monies or other money instrument belonging to or accruable to one who is owing another (judgement debtor) to pay that money to the person being owed known as the judgement creditor. The 3rd party here could be an Employer who has in his/her possession salaries accruable to the judgement debtor. For example, if Charles Ogbu owes a woman who sells achicha close to his office and refuses to pay, she may decide to institute a garnishee proceeding where the court will force Charles Ogbu's Employer to channel Charles' salaries to her until the judgement debt owed by Charles is liquidated in full. If my Employer fails to abide by the garnishee order and the woman goes back to court to get a Writ of Execution, it will be fully enforced, NOT AGAINST ME (Charles) who is owing but against my employer (the Garnishee) who will now be treated by the court as the debtor.

But in most cases, the Third Party is usually the Banks where people keep money as is the case here.

In 2004, during the government of Chief Olusegun Obasanjo, the Nigerian Custom Service seized goods legally imported by Innocent Chukwuma, the chairman of Innoson and went further to auction off the goods. Innoson took Customs to court claiming damages and won but the Custom Service refused to pay him the money as ordered by the court. He (Innoson) then located Customs account with the GTB which has enough funds to settle the judgement debt and instituted a Garnishee proceeding with GTB as the third party known as the Garnishee but the Bank REPORTEDLY connived with the Nigerian Custom service and released the fund already covered in the garnishee proceeding to the Custom. By allegedly conniving with the judgement debtor (the Customs), GTB, in the eye of the law, has ceased being a Third Party but has automatically become the judgement debtor against whom the Writ of Execution must be implemented in full.

Now, there is a little confusion here: In its Press statement released yesterday, Innoson Vehicles claimed its Writ of Fi Fa (a legal document by which assets belonging to a judgement debtor may be seized) with which it sealed off some GTB branches in Anambra state yestarday, is in connection with the illegal deduction case while the GTB in its own statement below is claiming the action of Innoson is in respect of a Garnishee proceeding against the account of the Nigerian Customs domiciled with the Bank and not against the Bank as an entity.

If Innoson is sealing off GTB branches with a Writ of Fi Fa, it is illogical to claim it is in respect of a Garnishee proceeding against the account the Nigerian Customs Service has with the Bank because Garnishee proceeding is mostly targeted at the third party holding money belonging to the judgement debtor in its possession. It must either be in respect of the illegal deduction case as claimed by Innoson or it must be in respect of the Garnishee proceeding in which GTB is the erring Garnishee who connived with the judgement debtor and is now being treated as the debtor. Either way, GTB is clearly being economical with the truth here.

I am deeply concerned about the rift between Innoson and GTB especially if supreme court has finally ruled out. That's the highest court in Nigeria. The window is closed for any room for appeal or out of court settlement. Take it from me, No Bank in Nigeria will cough out 8 billion naira and not shake. CBN placed the soludo consolidation at 25 billion naira for all banks. that's what is kept by CBN and its not meant for court cases but to secure shareholders in event of total collapse. MTN being being an afro- Asian brand far bigger than GTB was slammed by FG to pay a tax fee of 2.1billion dollars 3 years ago. Till today, MTN is still pleading to the government to pay 800 million dollars and spread it in 3 years. GTB may have 8 billion to pay spread in 10 years but they don't have it now. It doesn't always look as its posted at every financial year by commercial banks in Nigeria. Apart from buildings and cars, GTB largely have their money in other assets, stocks, Bond, Money market and Treasury bills. These monies are not easily accessible by banks as a lay man outside the industry would think.

It has become a media war now and the biggest loser her is GTB. The more GTB delays in finding a solution the more the interest increases, GTB is not losing money only but customers. The reputational damage is inexplicable. And I wonder why the legal team did not settle out of court after appeal court ruling. I remember appeal court asking GTB to produce the log book which they alleged that Innoson did not sign, they said it was burnt in their archive. They also said Innoson forged Bills of laden. In all this, GTB should have known that if anything goes wrong, they have a lot to loose. GTB is a PLC with share holders money. Where will they get 8 billion to pay for a court ruling. Where will they tell share holders they got the money to pay him from? You see, it's not a chicken change for GTB as many lay men will make you believe. Every kobo GTB will spend this year has been budgeted for and approved by the banks board. They couldn't have approved over 200 million for legal issues in 2019. Not possible. Most banks weigh their chances and settle out of court.

The owner of GTB is not Agbaje, he only has the largest share. GTB being a public limited liability company is owned by every Nigeria or foreigner who has a single share in that bank. If you are a share holder, will you allow your money to be given to another company?

I just listened to a video now where Innoson has given them an olive branch. He said, GTB told appeal court in an affidavit that if they pay him 8billion they will close shop. Innoson is saying, I don't want you to close shop, convert what you are owing me to shares.

The question is who has the largest share in GTB? Is the share up to 8billion? If the current highest share holder is less than 8 billion in cash value, that makes Innoson the highest share holder in the bank. If GTB practice preference of highest share in their governance book. Innoson automatically has an overwhelming influence in whatever happens in that bank going forward. His legal team may have studied all these to have issued a statement that they are taking over GTB except they pay him but I know they don't have that money to pay and the more they delay, the more interest is accrued. It's a delicate situation that defies logic.

I am concerned because this case is not good for our economy. Jobs will be lost.

GTB should approach innoson to negotiate the best way out. He seems ready for legal battles and it may not end well.

Your parents trained you well

Thank you

I trust Tinubu to foot the bill for GTB
.