Access Bank Dragged to Court Over Refusal to Refund N14.3 Million
Satek Nigeria Limited, a Nigerian company, has filed a lawsuit against Access Bank Plc at the Lagos High Court, alleging that the bank refused to refund N14.3 million ($33,000 USD) after a contract failed.
According to court documents, Satek Nigeria Limited and its Chief Executive Officer, Mr. Samson Babajide, entered into a contractual agreement with Technova Industries Limited to import deep chillers. To secure the contract, Access Bank issued a payment guarantee of N14.3 million to Technova Industries Limited.
However, Technova Industries Limited failed to fulfill its obligations under the contract, leading to a dispute between the parties. Satek Nigeria Limited and its CEO initially sued Access Bank and Technova Industries Limited at the Lagos High Court, but the case was struck out on a technicality on December 17, 2017.
Despite repeated demands, Access Bank has refused to refund the N14.3 million deposit to Satek Nigeria Limited. In their proposed amended statement of claims, Satek Nigeria Limited and its CEO alleged that Access Bank confirmed the payment guarantee would become void after 150 days if not utilized.
The claimants also stated that Technova Industries Limited had ceased operations in Nigeria and was unable to fulfill its obligations under the contract. They argued that Access Bank’s refusal to refund the deposit was unjustified and sought the court’s intervention.
Satek Nigeria Limited and its CEO are seeking the following reliefs from the court:
- A declaration that Access Bank’s obligation under the payment guarantee has lapsed and is no longer valid
- An order directing Access Bank to refund the N14.3 million deposit
- Interest on the deposit at the rate of 18% per annum from July 2017 until judgment is given
- Post-judgment interest at the rate of 10% per annum until the judgment sum is fully paid
- Cost of action assessed at N1.75 million
In its defense, Access Bank described the claim as “frivolous” and an “abuse of judicial process.” The bank argued that the money deposited belongs to Technova Industries Limited, not Satek Nigeria Limited. Access Bank also claimed that the payment guarantee expired and became null and void.
Justice Kudirat A. Jose has fixed October 7 for the report of service on Technova Industries Limited, the second defendant in the suit.
The case highlights concerns about the banking industry’s handling of payment guarantees and the need for transparency in business transactions.
Case Details:
- Suit No: LD/ADR/4527/22
- Claimants: Satek Nigeria Limited and Mr. Samson Babajide
- Defendants: Access Bank Plc and Technova Industries Limited
- Court: Lagos High Court
- Judge: Justice Kudirat A. Jose
- Next Hearing Date: October 7
