Appeal Court Restores Savannah Bank's Licence - Politics - Nairaland
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| Appeal Court Restores Savannah Bank's Licence by Nobody: 10:51am On Feb 06, 2009 |
SEVEN years after the Central Bank of Nigeria (CBN) revoked the licence of Savannah Bank of Nigeria (SBN) and had its premises closed, the Court of Appeal, Abuja Division yesterday declared the act "unconstitutional, null and void". In a unanimous judgment of the court panel presided over by Justice Uwani - Abba - Aji, the Court held that "the revocation of the bank's licence was done in bad faith." Consequently, it ordered the CBN and the Nigeria Deposit Insurance Corporation (NDIC) to immediately restore SBN's operational licence. The appellate court also awarded N100 million damages against CBN and NDIC for the said unlawful revocation of the licence. The court restrained CBN and NDIC from using security officials to harass the bank from operation. While granting succour to the bank, the court mandated it (SBN) to raise the N25 billion re-capitalization fund which other banks were caused to raise by the regulatory body - CBN. The judgment delivered by Justice Abba - Aji, in part reads: ``From the evidence before the court, we are of the view that the revocation of the operative licence of Savannah Bank was unlawful as we have found that it was done in bad faith. "The respondents (CBN and NDIC) are not entitled to revoke the licence of the bank or take over the business. The respondents are therefore restrained from using members of the Nigeria Police Force to interfere or disturb the operations of the appellant." A judge of the Federal High Court, Abuja Division, Mr. Stephen Jonah Adah, had on October 20, 2006, held that the revocation of SBN operational licence was "lawful". Adah held: "From the totality of evidence, it is clear that the regulatory authorities complied with the Company and Allied Matters Act (CAMA) 1990 as well as the Banking and Other Financial Institution Act BOFIA through the course of their action. "The defendants went through due process up till the decision to revoke the plaintiff's operational licence, which is the subject matter of the plaintiff's action before the court." Dissatisfied with that decision, the bank headed for the appellate court, praying it to set-aside the lower court's verdict. The prayer was yesterday granted just 12 days shy of seven years of its closure. Savannah Bank's limbo began on February 17, 2002, when CBN declared it insolvent on the ground that it had insufficient assets to meet its liabilities. The apex bank consequently withdrew the operational licence of the bank while the NDIC took over the liquid, movable and immovable assets of the bank. The bank felt aggrieved by the action of the CBN and filed the suit at the High Court on Febuary 18, 2002 to challenge the revocation order. Counsel representing the CBN, Mr. Olusegun Jolaawo from the law firm of Rickey Tarfa (SAN) said his client would challenge the judgment at the Supreme Court. Savannah Bank as a commercial bank was established in 1960. Its operational headquarters is located in the business district of Lagos at No.6 62-66 Broad Street, Lagos. The bank, before its closure in 2002 had 118 branches across the country. On February 18, 2002, Nigeria Deposit Insurance Corporation (NDIC) filed a petition for winding up the affairs of the bank and obtained an ex parte order of court, an order appointing a provisional liquidator for the bank, The bank on February 21, 2003 filed a motion on notice for an order discharging and or vacating the appointment of the corporation as provisional liquidator on the ground that the appointment was contrary to the Companies Winding Up Rules. The Federal High Court on May 2, 2002, refused to grant the bank's application to set aside the appointment of the provisional liquidator. Thereafter, the motion was dismissed. But the bank did not give up on May 15, 2002, it filed an appeal against the ruling of the lower court. It also filed a motion for stay of proceedings and interlocutory injustions restraining NDCC from acting as provisional liquidator pending the determination of the appeal. NDIC did not wait for the determination of the appeal before it went ahead to liquidate the bank. When contacted yesterday on phone, the chairman of the bank at the time of closure and a former governor of old Anambra State and presidential candidate of the Peoples Democratic Party (PDP), Chief Jim Nwobodo, said he was happy with the judgment of the appellate court but he would not rejoice yet until he hears the reaction of the Central Bank of Nigeria (CBN). |
| Re: Appeal Court Restores Savannah Bank's Licence by smooooooth: 10:58am On Feb 06, 2009 |
POLITICS!!!!! |
| Re: Appeal Court Restores Savannah Bank's Licence by RICHIEBOI1(m): 11:24am On Feb 06, 2009 |
unbelievable! this was a bank that declared bankrupcy and made away with peoples hard earned money .has once again resurfaced and is been compensated with a hundred milla. kai!dis country naija  |
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