The Federal High Court sitting in Abuja has ordered the Asset Management Corporation of Nigeria(AMCON) to claim ₦478 million against Perfect Aims Global Engineering Limited and others over their failure to pay outstanding debts in their loan agreement with Keystone Bank (defunct Platinum Habib Bank Plc) since September 2016.
Justice Inyang Ekwo in his judgment marked Suit No: FHC/ABJ/AMC/50/2022 and dated March 7, agreed with the debt recovery agency that the defendants who are in the business of rehabilitation and construction of roads, refused and failed to discharge the outstanding debts with the bank including the 20% annual interest rate involved in the agreement.
AMCON’s lawyer, Barrister Olatunji Muritala, contended that the defendants were granted several contract finance facilities at different times.
He argued that the loan grew to N478 million but they failed to pay as when due and chose to mislead the bank.
Muritala said,
- ” The defendants exposed the claimant to unwarranted litigation by failing to liquidate its outstanding indebtedness as and when due and securitizing the debt with a property whose location is not ascertainable.”
According to the court, the defence’s failure to bring a legal representative to deny the allegations showed they had accepted the position of AMCON on the matter.
Ekwo held,
- ” It must be stated at this point that the defendants being served, failed to enter a defence in this case. The consequence of failure to enter defence is well known and has been properly articulated by the learned counsel for the claimant (AMCON).
- ” I find that the claimant has established its case by a preponderance of evidence as required by law. ”
Backstory
According to the court document seen by Nairametrics, the contracting firm and its director were customers of the defunct Platinum Habib Bank (now Keystone Bank).
The bank had granted them several contract finance facilities running into millions beginning with N130 million.
The firm’s directors had executed a memorandum of acceptance with the bank dated August 15, 2008, while accepting the terms of the contract finance facility.
When the bank became unable to recover the loan, it sold all the rights, titles, and interest to AMCON via a Loan Purchase and Limited Servicing Agreement.
AMCON being a debt recovery agency, instituted a legal action against the engineering company.
