Matters/Banking
Guaranty Trust Bank Plc v. Obosi Microfinance Bank Ltd
A recovery mandate run to completion — judgment, garnishee and realisation — without the satellite litigation that usually follows.
Forum
High Court of Lagos State
Year
2020
Discipline
Banking
Outcome
Recovery enforced
The background
What happened
A defaulting microfinance institution had ceased servicing an inter-bank facility secured over property and receivables.
Earlier attempts at recovery had stalled in correspondence for over two years.
Assets were at risk of dissipation once proceedings began.
The question for the court
How to convert an undisputed debt into cash without allowing the debtor to convert enforcement into a second round of litigation.
Counsel
Recovery and enforcement team
Result
- Judgment obtained on the undefended list.
- Garnishee orders made absolute against three institutions.
- Secured property realised and the facility repaid in full.
A comparable matter?
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+234 816 899 4065How it was argued
The case we put
Three lines of argument, run together rather than in the alternative.
Undefended list, not a trial
The claim was framed so that the debt was capable of summary determination, denying the debtor a platform for a defence it did not have.
Enforcement planned before judgment
Garnishee targets, security perfection and the realisation route were mapped before the writ issued, so execution began the week judgment was entered.
Close off the collateral attacks
Anticipated applications to set aside and to stay were answered in advance with affidavits already on file.
Why it matters
Enforcement is a design problem, not an afterthought. The plan for getting paid was written before the claim was filed.
High Court of Lagos State · 2020
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