19th May, 2011
The liquidator of Lea Bank Plc, Nigeria Deposit Insurance Corporation (NDIC), has renewed its debt recovery suit against a limited liability company, Eco Consult Limited and its managing director, A.A. Atanda.
In an amended statement of claim filed before a Federal High Court in Lagos, South West Nigeria by the law firm of Supo Ati-John, NDIC alleged that sometimes in 2002, the defendant was granted some overdraft facilities of N30 million.
Duly stamped loan agreement was executed by both parties, while in consideration of the bank’s granting various banking facilities, Mr. A.A. Atanda executed deed of guarantee, binding himself or his successor and assignee, to liquidate Eco Consult’s indebtedness in the event of failure of the company to pay up the credit facility.
The defendant executed deed of guarantee on the property known and described as Plots 187A and 187B Moshood Olugbani Street, Victoria Island, Lagos State.
When the facilities became due, a letter of demand dated 26 May, 2006 was written to the defendants and N5 million was paid, while another sum of N5 million was paid at the institution of this suit, thereafter all entreaties made to ensure that the defendants liquidate the balance of the loan had failed as they refused to pay their indebtedness which stood at N29,112,114.84 being capital and accrued interest on the overdraft facility granted them.
Consequently, the plaintiff’s claim against the defendants jointly and severally is in the sum of N29,112,114.84 being capital sum, plus interest as at 16 January, 2006, plus interest on the said sum at 21 per cent per annum from January 2006 until judgement is delivered or in the alternative, to sell the property located at Plots 187A and 187B used as security for the loan.
The case was adjourned till 1 June, 2011 for hearing.