Globus Bank faces N10bn damage claim over loan contract

A firm, Haril Global Solutions Limited, has asked the Federal Capital Territory (FCT) High Court to order Globus Bank Limited to pay it N10 billion in general damages for an alleged breach of loan contract, among other issues.

This relief is outlined in its writ of summons instituted against the bank in suit number CV/1456/2024. The claimant contends that the bank allegedly carried out multiple transactions on its account without the company’s knowledge or authorisation, thereby failing to comply with the terms and conditions of the loan agreement.

Pelumi Olajengbesi, the applicant’s lawyer, stated that despite the defendant breaching the contract terms with his client, it wrote to Access Bank, Fidelity Bank, and Wema Bank, allegedly misrepresenting facts.

He stated that as a result, the respective banks placed a “post no debit” on all his client’s accounts held with them.

In the claimant’s statement on oath, deposed by Oluwaseun Onobun, a Director at Haril Global, he explained that on December 7, 2021, Globus Bank sent a letter to his company offering an overdraft loan facility of N500 million to augment the claimant’s working capital, with a tenor of one year.

He stated that the offer letter was duly signed, signifying the company’s acceptance of the offer from Globus.

The witness indicated that the express terms and conditions of the overdraft loan facility specified that the loan was provided at an interest rate of 16% per annum, and Globus was to maintain a Debt Service Reserve Account (DSRA) funded with at least two months’ interest cover for the duration of the facility.

He argued that due to the longstanding cordial relationship between the claimant and Globus Bank, and the fact that the claimant never defaulted on the contract terms, the defendant offered to increase the overdraft loan facility from N500 million to N1 billion on July 14, 2022, to meet the claimant’s operational cash flow requirements for a year.

He further stated that after the completion of the initial one year loan arrangement and the smooth business relationship, the facility was increased to N8 billion in August 2023 at various times.

He maintained that the claimant, from 2021 to 2023, when the overdraft loan facility was initiated and reviewed with increments, promptly paid all rates, charges, and interest on the facility between April 2023 and January 2024.

He stated however, that the claimant noticed a significant reduction in the overdraft with an available balance from over N4 billion from the N8 billion duly granted to a surprising N223,000,000.

He said that on December 13, 2023, following inquiries, Globus Bank sent a doctored statement of account dated December 13, 2023, containing transactions the claimant was unaware of.