Micro Finance Bank Restrained From Dissipating Assets

A Federal High Court sitting in Osogbo, southwest Nigeria, has ordered Oduduwa Micro Finance Bank Nigeria Limited and its agents operating in Ile Ife, not to dissipate, transfer or dispose off its assets pending the hearing and determination of the N30 million suit instituted against it by one Dr. Adetunji Obawole.

The court’s order was sequel to an application filed before it by a Lagos lawyer, Mr. Abidemi Oladigbolu, on behalf of Dr. Obawole, to issue an order preserving the micro finance bank’s assets from being dissipated.

In an affidavit sworn to by a legal practitioner, Mr. Kayode Rufus and field before the court by Mr. Abidemi Oladigbolu, the deponent averred that sometimes in April 2010, Oduduwa Micro Finance Bank solicited for a fixed deposit from the petitioner consequent upon which he made two separate fixed deposits totalling N29 million.

However, at the various maturity dates of the deposits, the respondent failed to honour its due obligations in respect of the deposits and consequent upon various demands, the petitioner wrote a letter dated 4 January, 2011, demanding for full payment of over N30 million fixed deposits with the bank and in view of the its inability to pay the debt, he was compelled to issue the necessary statutory notice pursuant to Sections 408 (d) and 409 ( a) of the Companies and Allied Matters Act, 1990, for the commencement of a winding up proceedings against the bank.

Thereafter, the petitioner gave a power of attorney to Mr. Abidemi Oladigbolu as his agent to, among other things, take over the demand and the eventual receipt of the full payment of his matured and already due fixed deposits totalling over N30 million from the respondent.

Kayode averred further that the petitioner has been reliably informed that the respondent has been making tremendous moves to dissipate or sell its assets as well as withdraw its monies and various deposits it has with some commercial banks in Nigeria as well as the Central Bank of Nigeria. Therefore, the application was brought to prevent the bank from selling off its assets and financial investments in other banks.

Justice Babs Kuewumi, after hearing Oladigbolu’s argument, granted the application as prayed, while the defendant’s counsel said he was yet to file any defence and requested for an adjournment.

The matter was adjourned till 14 December this year.