Court orders commercial banks to appear for judgment debt against Ekiti state government

A Lagos division of the Federal High Court granted a “Nisi Order” to seize accounts belonging to the Ekiti State government domiciled in several commercial banks in Nigeria.

A Nisi Order, is an order that orders a garnishee (mainly banks) to appear in court on a specific date and show why an order should not be made on him for payment of a court debt from from the account of a judgment debtor to a judgment creditor.

In a trial marked: FHC // L / CS / 1229/2021, the applicant, Mr. Oladimeji Olugbenga Adewumi on behalf of the former LG advisers who were dismissed before the expiry of their mandate, instituted a garnishment procedure against the Ekiti state government to force it to enforce the 2016 judgment debt, according to NAN.

Pass

The former presidents and councilors of local government were elected on December 20, 2008 in the 16 local government zones of Ekiti State. Their term was due to end in December 2011, but was terminated earlier by ex-Governor Kayode Fayemi on October 29, 2010.

In 2016, the Supreme Court rendered a judgment in favor of the 16 presidents, vice-presidents and councilors of local communities. The Supreme Court ordered the state government to pay them their outstanding emoluments.

However, the state government has not yet implemented the Supreme Court judgment, therefore, they instituted garnishment proceedings to enforce the judgment debt.

What happened in court

Presiding Judge Judge Yellin Bogoro found the claim to be valid after reviewing all the processes before him in support of the claim.

He granted the requested reparations but exempted the Central Bank of Nigeria because there was no evidence that AGF’s consent had been obtained.

“I have reviewed all of the processes filed in this tribunal in support of the claim, I have also reviewed the existing laws under which the claim is filed.

“I find merit in the request and I grant, just as the request is granted.

“Only that the requested measures will not apply to the Central Bank of Nigeria, the reason being that there is no evidence that the consent of the Attorney General of the Federation was not requested and obtained. “

“That a Nisi order be granted binding all sums to a maximum of one billion five hundred and twenty-three million sixty-six thousand seven hundred naira.” “ said the judge.

The judge ordered that the Nisi order be served on government debtors (Ekiti State government) and foreclosed third parties (banks).

Some of the banks included, First Bank, Keystone Bank, First City Monument Bank, Heritage Bank, Polaris Bank, Sterling Bank, Union Bank, Unity Bank, Wema Bank, United Bank for Africa.

After ordering that the state government and the banks be put on formal notice, he adjourned the case until February 8, 2022.

What you should know

  • Judicial creditors, while seeking to be paid the remainder of their emoluments for their remaining term (15 months), obtained a Nisi order.
  • A garnishment procedure is instituted to enforce a judicial debt.
  • While the Ekiti State government is the judgment debtor, Mr. Adewumi and the other advisers are the judgment creditors in the lawsuit.


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