The Court of Appeal sitting in Lagos has set aside a 2014 judgment of the Federal High Court, which upheld Guaranty Trust Bank Plc’s N970 million outstanding debt claims against RCN Networks Ltd and Agboola Abiola, who is said to be one of the sons of the late MKO Abiola.

Appeal Court judge, Justice Paul Bassi, set aside the trial court judgment which concerned a purported contractual agreement executed between the parties via the Deed of Tripartite Legal Mortgage dated 15th August 2012, involving the property of Abiola.

A Deed of Tripartite Legal Mortgage is a three-party legal agreement involving a borrower, a bank, and a third party.

The arrangement provides security for a loan through a mortgage on a property or asset, especially when the person in need of the loan lacks sufficient collateral.

Legal Dispute

At the Federal High Court, GTB accused the respondents of defaulting on the agreement, resulting in outstanding liabilities.

“A declaration that upon the failure of the 1st Defendant to liquidate the outstanding indebtedness of the sum N970,743,041.15 owed to the Plaintiff, the 2nd Defendant (Abiola), being its Guarantor/Surety, becomes primarily liable to pay the said debt.

“An order of perpetual injunction restraining the 1st and 2nd Defendants, their privies, agents, and servants from interfering with, obstructing, disturbing, and/or frustrating Mr. Norrison I. Quakers SAN, the Receiver/Manager appointed by the Plaintiff, from exercising the powers vested in him or performing his duties as Receiver/Manager over the asset listed in the Schedule of the Deed of Tripartite Legal Mortgage,” GTB prayed at the lower court.

On 20th June 2014, the trial court granted the reliefs in GTB’s motion of 8th April 2014 and gave final judgment in favor of the respondent.

or fraud by itself. That would be proceeding on a faulty premise,” Paul Bassi said.

The judge held that the obvious conclusion is that the lower court was in error to have determined the rights of the parties on a contentious document that was allegedly forged.

“This court cannot endorse the decision of the lower court on this basis. I therefore resolve this issue in favor of the appellants,” the judge said.

The Appeal Court allowed the appeal and set aside the judgment of the Federal High Court, Lagos Division, delivered on 20th June 2014, in suit no: FHC/L/CS/876/2013.

Nairametrics