10th February, 2011
In a bid to recover the debt of N172,150,201.09, Afribank Plc has dragged Carnco Foods Nigeria Ltd andÂ two of its directors; Mrs. Neela Sankey and Amit Sankey before a Federal High Court in Lagos.
The bank alleged that sometime in January 2006, Carnco Food Nigeria Ltd applied for the renewal of itsÂ existing facilities comprising the following (a) overdraft of N75 million; (b) a short term workingÂ capital of $1 million; (c) a short term loan for local purchase of N10 million and (d) a duty financeÂ of N15 million.
The facilities were allegedly guaranteed by Mrs. Neela Sankey and Amit Sankey.
The bank said that all its effortsÂ to recover the debt from Carno Company proved abortive as theÂ company refused and neglected to repay the facilities.
Therefore, the outstanding balance to be paid by the company as at 18 May, 2010 remainsÂ N173,150,201.29 with the accrued interest that was guaranteed by Mrs. Neela Sankey and Amit Sankey,Â vice chairman and managing director of the company respectively.
The claim of Afribank Plc against Carno Food Nigeria Limited is in the sum of N172,150,201.29 withÂ interest at the rate of N20.5% per annum from 12 May, 2010 until judgement is delivered andÂ thereafter, interest at the rate of N10% per annum until the debt is liquidated.
In its defence, the company, while denying almost all the averments of the Afribank, said that theÂ bank, without consulting with it, collapsed all the facilities, varying interest rates and tenuresÂ into its assent and arrived at the stated figure as debt. This was disputed and is been challenged byÂ Carnco in several correspondents and is the subject of litigation in suit number LD/1270/10 at theÂ Lagos High Court in which the bank is a defendant.
In their defence, Mrs. Neela Sankey and Mr. Amit Sankey specifically denied that they executed aÂ personal guarantee sequel to any letter of offer or any other transaction.
In view of this, they urged the court to dismiss the suit with substantial costs as it is frivolousÂ and vexations.