The Federal High Court in Abuja has ordered Jaiz Bank PLC to possess and sell the 1,150 metric tonnes of rice paddy wire house belonging to Chancellors Farms Nigeria Limited, Kaduna following its failure to pay back N213 million loan.
The order was granted in a motion ex-parte marked FHC/ABJ/CS/401/2024 and filed by the bank against the agricultural firm.
The bank’s lawyer, Yakubu Fobur Esq told Justice Inyang Ekwo that the firm contravened the Companies and Allied Matters Act when it refused to pay its outstanding debt within the stipulated period.
The lawyer explained that orders from the court are anticipated urgently because the respondent has allegedly started selling the 1150 metric tonnes of rice paddy pledged as security for the facility extended to it by the bank.
In his motion seen by Nairametrics, he explains further,
- “That on or about October 18, 2021, the 1st Respondent applied for a credit finance facility i.e… for sale of goods under Murabaha Finance from Jaiz Bank Plc for the sum of N180,000,000.00 (One Hundred and Eighty Million Naira Only) for the purchase of Layers (point of lay) feeds, drugs, generator, fan expellers and chicken cage (25, 000 Birds).
- “That the bank carefully considered the application for the credit finance facility by the 1st Respondent and granted the same on November 3, 2021, for 18 months (about 1 and a half years).
- “That on or about January 2022 the 1st Respondent again applied for another credit finance facility i.e… Warehousing under Murabaha Finance from Jaiz Bank Plc for the sum of N195,000,000.00 (One Hundred and Ninety-Five Million Naira Only).
- “That the debit balance against the 1st Respondent’s account with the bank as of February 29, 2024, stood in the sum of N213,400,000.0OK (Two Hundred and Thirteen Million, Hundred Thousand Naira Only) being the outstanding principal facilities and penal charges on the facilities when the Applicant appointed a receiver over the charged assets of the 15″ Respondent with it.”
Fobur sought the following orders,
- “An order of the Honourable court giving directions to the Receiver I.E. Yakubu Inuwa officially known as Dr. Yakubu Fobur Esq to take immediate possession, management and sale of the 1,150 Metric Tons of rice paddy wire house at the premises of KD Waters Limited, Mando Light Industrial Area, Kaduna, Kaduna State.
- “An order of the Honourable court giving directions to the receiver I.E. Yakubu Inuwa officially known as Dr.Yakubu Fobur Esq to take physical possession of all the landed properties/premises/pieces of land, building and appurtenance therein situate, being and laying at the following areas in Kaduna State for the purposes of carrying out the receivership activities.
- “An Order of the Honourable court directing the 3rd Respondent i.e.. the Commissioner of Police, Kaduna State Police Command to provide necessary security to the receiver in the process of taking physical possession of the premises referred to, in paragraphs 1 and 2 above and thereafter, to avoid any breach of law and order.”
What transpired in court?
At the resumed proceedings, the bank’s lawyer urged Justice Inyang Ekwo to grant his first and third requests in the interest of justice while withdrawing prayer 2.
The judge agreed with the bank’s lawyer.
He ruled,
- “After Hearing Dr. Yakubu A. Fobur of Counsel for the Applicant move in terms of the motion paper. It is hereby ordered as follows:
- “Prayer 2 is withdrawn and struck out.
- “Order is hereby made directing the RECEIVER I. E. YAKUBU INUWA officially known as DR. YAKUBU FOBUR, ESQ. to take immediate possession, management and sale of the 1,150 Metric Tons of rice paddy wire house at the premises of KD Waters Limited, Mando Light Industrial Area, Kaduna, Kaduna State:
- “Order is hereby made directing the 3rd Respondent i.e. the Commissioner of Police, Kaduna State Police Command to provide necessary security to the receiver in the process of taking physical possession of the premises referred to, in paragraphs 1 and 2 above and thereafter, to avoid any breach of law and order.”
What you should know
- Jaiz bank is Nigeria’s pioneer non-interest bank.
- Under its Murabaha Finance loan arrangement, customers can acquire building materials, consumable goods and real estate with the flexibility of a monthly payment plan.
- But from its court documents, the receiver of its loan flouted the agreement.
- The Federal High Court has jurisdiction over loan disputes, hence, the suit.
