Debt Recovery: Company May Lose Property


In a bid to recover a debt of N47,179,828.38, Spring Bank, in defence of a suit filed against it by a limited liability company, Leading Edge, is urging the court not only to dismiss the claim with substantial cost, but to also order the bank to sell a property located at 8, Omila Teda, Onireke, Ojo, Lagos, for the purpose of recovering the debt.

In a written statement of a witness on oath by Albert Nwanozie in support of the counterclaim of Spring Bank, filed before Justice Binta Murtala-Nyako, by a Senior Advocate of Nigeria, Dr. Joseph Nwobike, the deponent, a senior manager in the legal department of the bank, averred that Leading Edge Limited, as a customer of the bank, applied for and was granted an overdraft facility of N5 million.

The Managing Director/Chief Executive Officer of the company, Anthony Edoror, unconditionally accepted all the terms and conditions of the offer as the sole signatory to the company’s account with the bank.

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The company, as security for the loan, deposited the title deed of Mr. Edoror’s property situated at 8, Omila Teda Road, Onireke, Ojo, Lagos. The company also created a tripartite legal mortgage over the said property.

As at 30 June, 2005, the defendant was indebted to the bank in the sum of N47,179,828.38, while the company was alleged to have filed this suit against the bank so as to prevent it from taking over Edoror’s property to offset the loan.

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