NEM sues bank

NEM Insurance Plc has asked a Federal High Court, Lagos to commit to Prison, directors of First City Monument Bank (FCMB) for contempt of court.

The insurance firm through its counsel, Chief Bolaji Ayorinde SAN had initiated the committal proceedings, which was moved before the court last Friday on the ground that the Bank refused to obey the order of the court made on December 13, 2013.

The said order set aside the earlier Order Nissi made by the court in November 28, 2013 attaching the funds of the firm in possession of many Nigerian banks including the FCMB.

The court had given the order in favour of Dangote Floor Mills Plc to the effect that all monies of Nem in Nigerian banks should be frozen. But while other banks had complied with the order setting aside the earlier one, after Nem's counsel, Ayorinde had argued that the court was misled in giving the experte, FCMB insisted in holding on to the funds.

Consequently, the firm returned to court, to seek the committal of the directors of the bank for such affront.

"The applicant immediately obtained the Certified True Copy of Court setting aside the Order Nissi and served same on all the Garnishees including the respondent. The respondent notwithstanding the receipt of the Order still refused to release the applicant's monies in its custody in affront to the Court", the firm stated in a written address.

However, FCMB in its affidavit to show cause why an order for committal should not be made against it averred that it removed the lien placed on the applicant's accounts in consonance with the ruling of the court.

But that due to the fact the judgment creditor, Dangote Flour Mills was dissatisfied with the setting aside order and filed and appeal as well as stay of execution, it decided to preserve the res pending the determination of the case.

"That the respondent bank was served with another order of the court presided over by the Honourable Justice C.J Aneke dated 13 December, 2-13 setting aside his earlier order Nissi dated the 28th November, 2013.

"That in view of the order referred to above, the respondent bank removed the lien placed on the applicants accounts in consonance with the ruling of the honourable court.

"That surprisingly, the judgment creditor dissatisfied with the order of the court setting aside the order Nisi filed an appeal and served the Notice of appeal on the respondent bank. On 16 December, 2013 the judgment creditor's solicitors filed a motion on notice for injunction at the court of appeal praying primarily for an order to stay execution of the order of the court dated December 2013.

"That the respondent bank in order to preserve the res of the suit and not to be held liable by the court for the credit balances in the judgment debtors account laced a lien on all the accounts of the judgment debtors", Taofeek Jimoh swore on behalf of the bank.

After various applications were moved and argument of counsels were entertained, the trial judge, Chukwujekwu Aneke adjourned to rule on the applications on December 18.