Court orders bank to pay car dealer N34.4m compensation
Justice Chinyere Nwecheonwu of High Court of the Federal Capital Territory (FCT), sitting in Kuje, Abuja, on Thursday, ordered a new generation bank to pay the sum of N34.4m damages and compensation to a Kano-based car dealer, Tripple C Motors.
The judge gave the order in his judgment in the suit filed before the court by Tripple C Motors, seeking about N40m compensation against Pagmat Oil and Gas Nig. Ltd; Prudential Steps Savings & Loan, and a new generation bank.
The Kano-based dealer in its statement of claim, filed on its behalf by Ojonimi S Ameh, had averred that the bank had unlawfully withheld its money for 43 months after the supply of seven vehicles.
The vehicles, according to the claimant, were only delivered based on the fact that the Block Funds/Irrevocable Standing Order, dated December 20, 2018 was issued by the bank’s Utako branch Manager and handed to Dr. Adamu Kukuri, the claimant’s Director.
The claimant further averred that upon the expiration of 30 banking days after delivery of the seven vehicles, no money was paid into its account with Zenith Bank Plc as agreed to and undertaken in the Block Funds/Irrevocable Standing Order.
In the course of the hearing, Tripple C Motors called its director, Alhaji Adamu Kukuri, as its sole witness to prove its case against the respondents.
After presenting their respective cases, parties adopted their written addresses on May 15, 2024.
Delivering judgment in the case today, Justice Nwecheonwu held that the bank unlawfully withheld Tripple C Motors’ money for a period of 43 months without justification.
The judge resolved the sole issue for determination in the case in favour of the claimant and held that the car dealer was entitled to payment of the N86million by the defendant within 30 days of the supply of the cars for and at the instance of the defendants being the value of the cars supplied for and at the instance of the defendants by the plaintiff on December 28, 2018.
For this reason, Justice Nwecheonwu declared that the defendants’ failure to pay the said amount as at when due rendered them liable to payment of compensation to the claimant for wrongly holding onto its money in a commercial transaction.
The court also declared that the refusal and failure of the defendants to pay Tripple C Motors the sum of N86million for supply of cars it made for, and at the instance of the defendants, as at when due resulted in the loss of profits/earnings of the dealer in the sum of at least N4.3million per month for a period of 43 months cumulating to a loss of at least N34.4million for that period and thereby rendering the defendants liable to the claimant in damages.
Consequently, the judge an order directing the defendants to pay the car dealer the sum of N34.4million as projected returns and/or loss of anticipated profits/earnings within the 43 months its money of was withheld.
In addition, Justice Nwecheonwu, ordered the payment of 10 per cent interest on the judgment sum yearly from the date of judgment until the judgment debt is fully liquidated.
She, however, refused to grant the claimant’s relief seeking the sum of N6million as the cost of the suit.
NIGERIAN TRIBUNE
