Court permits AMCON’s sale of Abuja properties linked to BDC operator

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Justice John Terhemba Tsoho, Chief Judge of the Federal High Court, has ordered the Asset Management Corporation of Nigeria (AMCON) to liquidate properties associated to Farida Bureau de Change Limited for failing to repay a debt of N194.018 million to the bankrupt Platinum Habib Bank Plc.

Tsoho stated in his ruling that loan defaulters have caused many banks to fail over the years.

AMCON’s counsels, Ehi Barnabas and Ekwere Nsikanabasi Esq., filed action in Abuja in suit no: FHC/ABJ/CS/ 889/16, seeking the sale of the BDC operator’s properties due to its incapacity to repay loans provided.

They claimed that the defendant and two others owed the claimant N194,017,765.89 as of October 4, 2016, resulting from overdraft facilities offered by Platinum Habib Bank Plc on April 29, 2008 and July 29, 2008, respectively.

The claimant further asserted that the first and second defendants are prohibited from selling any interest in the properties they utilised as security.

AMCON sought an order of sale of the defendants’ properties pledged as security for the overdraft facilities covering the following assets:

“i. An undeveloped plot of land lying and situated at Plot No. LD 1014 Cadastral Zone A-09 Guzape District Abuja.

A fully developed property consisting of four semi detached three-bedroom flats located at Plot No. 135, Kugbo Extension Layout, Abuja.
iii. An undeveloped block of land located at No. 133 Kugbo New Extension Layout in Abuja.”

However, the defence team, lead by John Adam Okloho Esq., denied owing the bank in dispute or AMCON.

He explained that no money had been deposited to his clients as consideration for the loan agreement.

“There was no loan agreement between the 1st, 2nd defendants and the bank as being alleged by the claimant.

“The claimant has failed to produce before the court title documents allegedly pledged as collateral for the loan because the documents have at all times been in the possession of the defendants,” he submitted.