Egbaland, Oba Adedapo Adewale Tejuoso has slammed a N500 million suit on Access
Bank Plc and the Assets Management Corporation of Nigeria (AMCON) before a
Federal High Court in Lagos demanding N500 million damages over breach of
agreement on a margin loan.
The Ogun State monarch, in the suit with reference number
FHC/L/CS/1348/12, accused the bank of mismanaging some shares which were
purchased on his behalf, and of failing to render full accounts of the
transaction despite several demands.
Oba Tejuoso also alleged that the bank was grossly reckless
and negligent in the management of the shares, which resulted in serious losses
and damages to him.
In his statement of claim, the medical-doctor-turned
traditional ruler, averred that sometime in October 2007, Intercontinental Bank
(now Access Bank) approached him with a proposal to apply for a margin loan to
buy shares in some blue chip companies, and that after much pressure, he
succumbed and applied for N467,100,000.00 loan for the purpose of buying shares
subject to his contribution of ten percent of the loan sum.
By 2007 December, Oba Tejuoso further claimed, the bank made
a formal offer of the loan, while his instruction based on the advice he
received from the bank and its subsidiary, Intercontinental Securities Ltd
(third defendant) was that the money should be used to purchase 8 million units
of Zenith Bank and 10 million units of Bank PHB shares.
He also told the court that he contributed N47, 000,000.00
cash, while the purchased shares were kept in the bank’s custody as collateral.
Besides, the monarch told the court that it was the agreement
that at any time its value dropped below 130 percent, the bank should sell the
shares and credit him with proceeds to pay off the debt.
He maintained that the shares were not under his control and
that the bank failed to sell the shares as agreed when the value dropped far
below 130 percent.
But before then and after the maturity of the loan, the
monarch stressed that when he did not receive correspondence from the bank, he
wrote them seeking a clean bill of health and refund of N56, 843, 519 10 and
N13, 300, 889.00 being the balance due to him on the loan transaction.
But to his surprise, rather than pay him his balance, the
bank wrote him a letter demanding N299, 577, 863 80 purportedly as outstanding
sum on the loan.
The monarch again demanded his money from the bank, but it
was refused while AMCON took over the loan, and threatened to embarrass him
with precipitate foreclosure of his other assets not pledged towards the share
purchase loan.
Oba Tejuoso is, therefore, praying the court to mandate the
bank to render full account of its dealings on the loan, and an aggravated N500
damages for failure to carry out the agreement between them.
He also seeks a perpetual injunction restraining the
defendants from freezing his bank accounts or taking over the possession of his
movable assets without first obtaining judgment against him for a specific sum
of money.
But Access Bank has filed a preliminary objection, asking
that the matter should be struck out on the ground that the court lacked the
jurisdiction to entertain the suit.
The bank said AMCON has taken over the loan hence there is no
reasonable cause of action against it any longer.
