The Tapa Commercial Division of the Lagos State High Court has dismissed a N57.4 million debt recovery suit filed by United Bank for Africa Plc against its customer, Mr. Arueyingho Gbemi Mac, bringing to a close a protracted legal dispute that began in 2013.
Justice A. M. Ipaye, who presided over the matter, struck out the bank’s claims in suit No. LD/146/2013, holding that the claimant failed to establish that the defendant was indebted under a mortgage facility granted in 2007.
In a detailed judgment, the court found instead that the defendant maintained a credit balance of N7,574,592.87 after a comprehensive review of the account.
The bank, through its counsel, Mrs. G. Opeyokun, had sought to recover the alleged debt, alongside interest at 22 per cent per annum, and an order permitting it to sell a mortgaged property located in Lekki Phase 1, Lagos, on the basis that the facility had become non-performing.
However, the defendant, represented by Emmanuel Umoren, disputed the claim and filed a counterclaim, alleging excessive charges, unlawful interest deductions, and breaches of contractual and regulatory obligations.
He further contended that the bank acted prematurely in calling in the loan before the expiration of the agreed 10-year tenor.
A key element of the court’s decision was an independent auditor’s report commissioned through a court-approved process involving the Chartered Institute of Bankers of Nigeria.
The report revealed that the bank imposed excessive charges exceeding N51.9 million, including inflated interest and unauthorized fees, in violation of regulatory guidelines issued by the Central Bank of Nigeria.
Relying on the auditor’s findings, Justice Ipaye held that although the bank had a contractual right to call in the loan upon default, it breached its fiduciary duty by applying unlawful charges to the account.
The court concluded that once the excess charges were removed, no debt was owed to the bank. Consequently, it held that the claimant failed to prove its entitlement to the reliefs sought, including the right to sell the mortgaged property.
Justice Ipaye further set aside an earlier interlocutory judgment granted in 2014 and dismissed all claims by the bank.
In addition, the court ordered United Bank for Africa Plc to pay the sum of N7.57 million to the defendant, with interest at 10 per cent per annum from the date of judgment until full payment.
The bank was also directed to immediately return all title documents belonging to the customer.
