Innoson Flies To Court, As Court Stops GTB From Deregistering As LLC

Innoson Group has sought an order restraining Guaranty Trust Bank (GTB) changing from a Public company to a Private and a Financial Holding Company until the bank pays Innoson’s N32Billion Judgement debt.

Brandnewsday understands that this was made known in a statement made available by Cornel Osigwe, IVM Innoson Group‘s Head of Corporate Communications and Affairs, adding that the Nigerian owned auto company reeled out six unique requests to stop GTB’s moves from the Supreme Court.

In the filed motion, the Supreme Court of Nigeria has thrashed GTB’s motion filed to set aside the Apex Court earlier order (made on 27th February 2019) struck out GTB’s appeal against Court of Appeal judgement of 6th February 2014 in favour of Innoson Nigeria Ltd.

Recall that The Federal High Court, Awka Division on March 27th, 2019, pursuant to Supreme Court dismissing GTB’s appeal, granted leave to Innoson Nigeria Ltd to enforce and execute the judgment and Garnishee Order Absolute made by the court Coram Shakarho, J at the Ibadan Judicial Division on the 18th of May 2010 and the 29th of July 2011 respectively. This order was concurrently affirmed by the Court of Appeal in the judgment of 6th February 2014 and by the Supreme Court in its judgment of 27th February 2019.

Innoson Drags GTB To Court

In an effort to avert the payment of the N32 Billion debt, GTB reportedly swift to the court to restrain Innoson Nigeria’s prayer to suspend or set aside the experte orders made by the court granting Innoson leave to enforce the judgment and to issue the processes of executing same.

Moving further, as the court refuses GTB’s appeal leading to the order made on March 27th, 2019 in honour of IVM granting it the freedom to enforce the judgment. Also, in that application, all the steps are taken to meet with the court order, making the case valid and not vacated; whilst all the prayers by GTB in its motion of 1st April 2019 is not granted.

In a counter move, GTB flew back o the Supreme Court to apply for an injunction which will set aside the Supreme Court’s judgement dismissing Innoson Nigeria Ltd’s appeal. However, the Supreme Court struck out the motion on Tuesday, November 3rd, 2020.

According to the statement, GTB resorted to a scheme of de-registering itself as a public limited liability company and re-registering itself as a private limited liability company and a financial holding company as well.

while Innoson awaits its N32Billion Judgement debt to be paid by GTB, Innoson has taken proactive steps as it listed six prayers to the Federal High Court and therein restraining GTB; 2nd Defendant’s (Central Bank of Nigeria), 3rd Defendant’s (Security and Exchange Commission); 4th Defendant (Corporate Affairs Commission) from the following injunctions:

Innoson six Request From Court

(a) restraining the 4th Defendant (Corporate Affairs Commission) from deregistering the 1st Defendant (GTB) as a public limited liability company and or re-registering the 1st Defendant (GTB) as a private limited liability until it-GTB- pays the outstanding judgment debt of N32, 875, 204, 984.38k arising from Suit Nos: FHC/L/CS/603/2006 and No. FHC/AWK/CS/139/2012 respectively affirmed by the appellate courts in appeal Nos. CA/1/258/2011, SC.694/2014 and CA /E/288/2013 to Innoson Nig Ltd;

(b) an order of perpetual injunction restraining the 4th Defendant (Corporate Affairs Commission) from registering or re-registering the 1st Defendant (GTB) as a holding or financial holding company whether as a public or private limited liability company until it- the 1st Defendant(GTB) -pays Innoson Nigeria Ltd the outstanding total judgment debt of N32, 875, 204, 984.38k (Thirty-two Billion, Eight Hundred and seventy-Five Million, Two Hundred and four thousand, Nine Hundred and Eight Four Naira, Thirty-Eight kobo) arising from suit Nos. FHC/L/CS/603/2006 and FHC/Awk/CS/139/2012 respectively affirmed by the appellate courts in Appeal Nos. CA/1/258/2011, SC.694/2014 and CA/E/288/2013:

(c) An order cancelling the 1st Defendant’s (GTB’s) special resolution and or any other of its resolution that it should be deregistered as a public limited liability company and or be re-registered as a private limited liability company and or a holding company until it -the 1st Defendant (GTB)- pays Innoson Nig Ltd the total outstanding judgment debt of N32, 875, 204, 984.38k (Thirty-two Billion, Eight Hundred and seventy-Five Million, Two Hundred and four thousand, Nine Hundred and Eight Four Naira, Thirty-Eight kobo) arising from suit Nos. FHC/L/CS/603/2006 and FHC/AWk/CS/139/2012 respectively affirmed by the appellate courts in Appeal Nos. CA/1/258/2011, SC.694/2014 and CA/E/288/2013:

(d) an order setting aside the 3rd Defendant’s (Security and Exchange Commission) No -objection to 1st Defendant’s proposal to be re-registered as a private limited liability company and as a holding or a holding financial company:

(e) an order setting aside the 2nd Defendant’s (Central Bank of Nigeria) approval -in- principal granted to the 1st Defendant (GTB) to operate as a holding or a holding financial company.

(f) an order of perpetual injunction restraining the 2nd Defendant (Central Bank of Nigeria) from granting the 1st Defendant (GTB) a financial holding company license and or final approval to operate or carry on business as a financial holding company whether in its present name or as a private limited liability company until it, the 1st Defendant(GTB )pays the Plaintiff(Innoson Nig Ltd) the total outstanding judgement debt of N32, 875, 204, 984. 38k (Thirty-Two Billion, Eight Hundred and Seventy-Five Million, Two Hundred and Four Thousand, Nine Hundred and Eighty-Four Naira, Thirty-Eight Kobo) arising from suit Nos. FHC/L/CS/603/2006 and FHC/AWK/CS/139/2012 respectively affirmed by the appellate courts in Appeal Nos. CA/1/258/2011, SC.694/2014, and CA/E/288/2013.