Appeal court sets aside N507m judgment against GTBank, orders fresh trial

The Court of Appeal sitting in Lagos on Monday overturned a N507 million judgment previously awarded against Guaranty Trust Bank (GTBank) in favour of Chashar Farms Limited, a company linked to former Udom Emmanuel.

Delivering the lead judgment, Justice Okong Abang nullified the February 8, 2022 decision of the Lagos State High Court, describing it as a “miscarriage of justice” against the bank.

GTBank had challenged the lower court’s ruling, which granted summary judgment in favour of Chashar Farms Ltd over an alleged N507 million transaction dispute.

In his ruling, Justice Abang held that the trial court’s decision was contradictory and procedurally flawed.

He noted that the N507 million allegedly discovered during a police investigation to have been transferred from the respondent’s account through collusion with one Oyetola O. was the same amount awarded to the respondent by the trial court.

According to the appellate court, the case involved serious disputes of fact that were not suitable for determination under summary judgment — a legal procedure that allows judgment without a full trial.

“The trial court was clearly wrong in making those findings at the interlocutory stage without hearing the parties on the merits,” Justice Abang ruled.

He stressed that the issues raised required a full trial where oral evidence could be presented and witnesses cross-examined.

Justice Abang further faulted the trial court for relying on the extra-judicial statement of Oyetola O., made to the police, which was not subjected to cross-examination before the bank was found liable.

“Relying on that statement without allowing for proper interrogation denied the appellant the right to fair hearing, contrary to Section 36 of the 1999 Constitution,” he said.

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The appellate court also held that the allegations of forgery and fraud raised in the matter required strict proof under Sections 133(1) and 133(2) of the Evidence Act, which mandate proof beyond reasonable doubt in criminal-related allegations.

The court observed that the trial judge failed to consider aspects of the police report, including findings that the company’s director, Udom Emmanuel, allegedly did not honour an invitation for questioning during the investigation.

“If the respondent claims it did not authorise the transfer, why did it fail to cooperate with the police investigation?” Justice Abang queried.

He added that the dispute presented complex and triable issues, especially as the respondent sought a refund of funds allegedly withdrawn from its own account, while the bank denied any wrongdoing.

“In all honesty, this case presents serious triable issues, where a party that withdrew funds from its account seeks a refund,” the judge stated

Consequently, the Court of Appeal allowed the appeal, set aside the lower court’s judgment, and ordered that the matter be remitted to the Chief Judge of the Lagos State High Court for reassignment to another judge.

The court also awarded N1 million in costs in favour of GTBank.

With the appellate ruling, the suit will now commence afresh at the Lagos State High Court, where both parties are expected to call witnesses and tender evidence for full adjudication — unless either party opts to approach the Supreme Court for further review.