Appeals Court exonerates Zenith Bank from fines against Real Integrated & Hospitality

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Judge Muhammed Sirajo of a Lagos-based appeal court reversed the ruling of Lagos State High Court Judge OO Abike-Fadipe against Zenith Bank Plc.

On March 8, 2022, Judge Abike-Fadipe ordered Zenith Bank to pay Real Integrated & Hospitality Limited interest of 15% per annum on N872.8 million from May 17, 2011, when advance payment guarantees They expired until the judgment and, subsequently, at the annual rate of 10 percent until the final liquidation.

The company and the Gombe State Universal Basic Education Board (Gombe SUBEB) had sued the lender for alleged breach of contract after Zenith Bank, on October 7, 2011, did not allow the company to withdraw funds from its account. .

Dissatisfied with the sentence, the financial entity filed an appeal in the lawsuit number CA/LAG/CV/262/2022.

Ruling on the matter Wednesday, the three-man appellate court panel unanimously reversed the lower court’s ruling on the grounds that the trial court erred in assuming that the bank withheld the entire account statement from Real Integrated in light of Exhibit C6 (the Real Integrated Comprehensive Statement), which was offered by the bank for a limited purpose.

The court further held that there was no need for the lower court to invoke Section 167(d) of the Evidence Act 2011 against the bank and subsequently awarded cost of N200,000 against and in favor of Real Integrated & Hospitality Limited. of the Zenith Bank.

trade publication met that the councils of Zenith Bank, led by Prof. Fabian Ajogwu (SAN) and Mr. Sylva Ogwemoh (SAN), had challenged Judge Abike-Fadipe’s decision to award N2.5 million against the bank as cost of the action in favor of Real Integrated.

The legal team argued that the lender acted in full compliance with its contractual obligations under the Advance Payment Guarantee (APG) contract and that the trial court erred in its judgment.

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