Court Orders Retired Army General, Magoro to Pay Sky Bank N104m Debt

A Federal High Court in Lagos, has ordered Major General Mohammed Magoro (retd), former Minister of Transport, under the regime of military President, Ibrahim Babaginda, to pay a debt of N104. 061m to Skye Bank Plc.
The judgment was sequel to a debt recovery suit filed by Skye Bank against Magoro and a limited Liability company, Automobile Manufacturers Company limited.
In a statement of claim dated 20th of July, 2009 filed before the court by tHe bank, it was alleged that Automobile Manufacturers Company as a customer of the bank applied for and was granted the following facilities: “Sometime in February 2001, the company applied for a loan facility of N21.300mfor the financing a contract for the supply of 5 units of BMW motorcycles to Nasarawa State Government.
“On the 29th of March, 2001 the company further applied for overdraft facility of N39m which was granted.
By another offer letter dated 6th July, 2001, Skye Bank granted the company’s application for a credit facility in the sum of N48m, and further facility of N12,500 was also granted to the company via offer letter dated 7th January, 2002 to finance the procurement and installation of Radio communication for Nasarawa State Government.
“The various facilities granted by the bank to the company stood at N111.8m which was fully drawn and utilized by the company and with the fully backing of Major General Mohammed Magoro who was a Director to the company executed a full and unconditional personal guarantee for the full facility amounts and accrued interest in favour of the bank.
“The defendant failed to repay the outstanding facilities despite several demands by the bank, there is currently an outstanding sum of N104,061,683,” the statement said.
However, the defendants filed statement of defence and counter claim along with lists of witnesses and their written statements on oath, but the defendant failed to attend court proceedings, their written depositions were never adopted, therefore what was before the court are the pleadings not supported by evidence, which were deemed abandoned.
In her judgment, the presiding judge, Mojisola Olatoregun said: “The court cannot rewrite the contract for parties. Once the defendant found the terms acceptable, the parties are bond.
“There is nothing on the other side against which the evidence led by the plaintiff could be evaluated on the imaginary seek as the defendants failed to adduce evidence in support of their pleadings, plaintiff will succeed on minimum proof. The inability of the guarantor crystallizes immediately the third person is unable to pay the outstanding debt.
“I accept the plaintiff evidence on this and I am satisfied that Major General Magoro is liable to liquidate the indebtedness of the defendants. The prayer of the bank for the claim of the sum of N104, 061, 688, 30 being the outstanding amount owed the bank as at 19th January 2004 by the Automobile Manufacturer company limited succeeds.
“Interest on the aforesaid sum of N104,061,688, 30 at the rate of 20% per annum up till date of judgment and thereafter at the rate of 10% per annum until judgment is fully satisfied also succeeds. Cost of N50,000 is awarded in favour of Skye Bank Plc,” she said.

Author: News Editor

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