Two Indian Brothers Sued Over N4.2 Billion Debt

indians in nigeria

Sept 27, 2012 – Two Indian Brothers Sued Over N4.2 Billion Debt

Nigerian Federal High Court in Lagos, southwest Nigeria, has restrained two Indian Brothers S.L.J Obanputra and K.L. Jobanputra and their agents from disrupting or frustrating the receiver/manager, Mr. Olatunde Adejuyigbe, in exercising his duties over the property mortgaged by their company, Henley Industries Nigeria Limited, to First Bank of Nigeria Plc over an alleged debt of N4,126,219,753.85.

The order of the court was sequel to a suit field before the court by a Lagos lawyer, Barrister Ade Oyebanji on behalf of the receiver manager of Henley Industries Company, Mr. Olatunde Adejuyigbe and First Bank of Nigeria Plc against the Indian businessmen and their company over failure to pay the debt of N4,126,219,753.85.

In an affidavit sworn to by a legal practitioner, Mr. David Aransiola filed and argued before the court by Mr. Ade Oyebanji, it was alleged that Henley Industries Nigeria Limited who is a customer of First Bank Plc, applied for and was granted N500 million credit facilities by the bank.

In pursuance of the said credit facilities Henley Industries, executed a deed of legal mortgage in favour of the bank dated 9 February, 1995 which was duly registered with the land registry in  Ogun State and the Corporate Affairs Commission, Abuja.

The company was alleged to have defaulted and neglected to pay back its indebtedness which necessitated First Bank  exercising its power pursuant to the deed of legal mortgage by appointing  Mr. Olatunde Adejuyigbe as the receiver of the company.

The outstanding indebtedness of Henley Industries Company to First Bank Plc as at 31 May, 2012, was  N4,126,219,753.85.

Mr. Aransiola averred further that Mr. Adejuyigbe has made effort to discharge his duties as receiver but he is being prevented by Messers S.L. Jobanputra and K.L. Jobanputra who are the Directors of Henley Industries Company.

Mr. Oyebanji argued that the financial interest of the bank and the depositors funds invested in the bank will be in total jeopardy except the application is granted.

In his ruling, Justice Okechukwu Okeke while restraining the two directors from disturbing the receiver in the performance of his duties, ordered that the Inspector General of Police, Commissioner of Police, Ogun State and other officers assist the receiver manager in the exercise of his duties.