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Wednesday, June 29, 2022

Outstanding Lawsuits Filed Against GTB Increases to 647 with N436bn in Claims

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Guaranty Trust Bank (GTB), in its ordinary course of business, is presently involved in 647 lawsuits filed against it where it a defendant, according to data seen by MoneyCentral.

The number of lawsuits filed against the tier-one lender surged by 26 percent or 135 cases between December 2019 and June 2020.

The total amount claimed in the 647 cases against the Bank is estimated by the bank at N436.67 Billion and $59.41 Million up from N462.09 Billion and $39.03 Million, as at December 2019.

One of the most famous lawsuits against the bank is the the case between Innoson Motors and Guaranty Trust Bank Plc.

Innoson Nigeria Ltd had at the Federal High Court, Ibadan, obtained Judgment delivered on 20th December, 2010 against the Nigeria Customs Service and the Attorney-General of the Federation sued as Defendants.

Guaranty Trust Bank Plc was however not a party to the suit.

The Judgment sum was over Seven Hundred Million, Two Hundred and Twenty-Two Thousand Naira (N700,220,000) plus accrued and accruing interest at the time which came to about N2.4 Billion.

GTB appealed the Order up to the Supreme Court (SC. 694/2014) and was even found challenging the case of Innoson against Nigeria Customs, a case it was not a party to.

The apex Court upheld the Judgment of the Court of Appeal, affirming the Judgment of the Federal High Court which ordered GTB (by way of Garnishee Order Absolute) to pay the said N2.4 Billion to Innoson with a 22 percent interest, per annum, on the Judgment Sum until when it is finally paid.

The Bank has however instituted 443 cases in its defense with the total amount claimed in the cases instituted by the Bank being N109.70 billion.

GTB says its lawyers are of the view that the probable liability which may arise from the cases pending against the Bank is not likely to exceed N190.20 Million.

“This probable liability has been fully provided for by the Bank,” GTB said.

GTB released its half year 2020 results yesterday which showed profits down 5 percent even as it maintained its interim dividend payment at 2019 levels.

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