Court Orders Access Bank to Pay N1.8bn Damages for Illegal Deductions in Fictitious Accounts

A Federal High Court in Lagos has ordered Access Bank Plc to pay approximately two billion naira (N1,817,690,414.65) in damages for unlawful deductions and the opening of fictitious accounts.

Justice Ambrose Lewis-Allagoa ruled that Access Bank must compensate the plaintiffs in two separate lawsuits, numbered FHC/L/CS/1485/2015 and FHC/L/CS/1493/2015.

In the suit marked FHC/L/CS/1485/2015, the plaintiffs include MicCom Cables and Wires Limited, Chief Tunde Ponnle, and Comic Holdings Limited. Comic Holdings was added to the suit following a court order issued on February 16, 2018.

The plaintiffs in the suit marked FHC/L/CS/1493/2015 are Origin Energy Limited and Mr. Abiodun Ponnle.

While Access Bank is the lone defendant in both suits, it filed a counterclaim of N1,058,141,649.98 against Origin Energy Limited, Mr. Abiodun Ponnle, Chief Tunde Ponnle, MicCom Cables and Wires Ltd, and Comic Holdings Ltd. However, this counterclaim was dismissed by the court.

In the second further amended statement of claim dated March 8, 2024, and filed on March 12, 2024, the plaintiffs in the case marked FHC/L/CS/1485/2015, represented by their lawyer Tokunbo Davis, sought 27 reliefs against Access Bank Plc.

Access Bank opposed the suit, arguing it should be dismissed as unsubstantiated and frivolous.

Read Also: Court Awards Cost Against Access Bank Plc, Trebesak Limited for Delaying Trial

Delivering judgment on October 16, 2024, Justice Lewis-Allagoa thoroughly reviewed all filings and submissions from both parties. He declared that the alleged debit balance on the first plaintiff’s account (number: 0004842444) was the result of excessive debts, unwarranted charges, compound interest, overcharges, and other illegal deductions made contrary to the terms outlined in the Offer Letters dated May 24, 2006; September 20, 2006; April 6, 2010; December 24, 2010; and March 18, 2013.

He further declared that the unilateral variation of interest applied by Access Bank officials, without formal consent and approval from the first plaintiff, is illegal and should be set aside.

In the suit marked FHC/L/CS/1493/2015, Justice Lewis-Allagoa issued the following orders:

1. The 1st Plaintiff is not indebted to the Defendant for the alleged sum of N1,058,141,649.98 billion or any other amount.
2. The conditions for a drawdown on the facility, as outlined in the offer letter dated August 20, 2014, were not met. Therefore, the Defendant has no right to operate or debit an account on behalf of the Plaintiff.
3. The fictitious account of the 1st Plaintiff, opened by the Defendant, is declared fraudulent and illegal.
4. The unauthorized account represents a fundamental breach, allowing the 1st Plaintiff to rescind the credit facility agreement.
5. The Defendant’s actions regarding the alleged indebtedness were motivated by the desire for illicit profit.
6. The illegal and fictitious account must be closed immediately.
7. The Defendant must release all title documents related to the properties secured for the purported facility.
8. A perpetual injunction restrains Defendant from interfering with the 1st Plaintiff’s operations and from making negative representations to third parties.
9. The Defendant cannot cause the arrest or detention of any officers or directors of the 1st Plaintiff over alleged indebtedness.
10. General damages are awarded in the sum of N500 million.

Additionally, the judgment sum awarded against Access Bank, including interest, must be paid into the 1st Plaintiff’s account within three days. Account details: Account Name: Origin Limited, Bank: Keystone Bank Limited, Account Number: 1006707643.