Unity Bank PLC. is at the risk of losing N4billion to Zamfara State Compulsory Free Basic Universal Education board. The bank which is entangled in a court battle in a suit “Zamfara State Compulsory Free Basic Universal Education Board v. Unity Bank Plc. Suit No. ZMS/GS/35/2018” sighted by Businessnewsreport.com.ng for not complying with an earlier High Court Ruling. According to the court documents the High Court of Zamfara State has adjourned ruling to Monday 28, September 2020 in a judgment summons proceedings brought by the Zamfara State Universal Compulsory Free Education Board against Unity Bank PLC. in respect of a judgment debt approximating N4,938,974,970.97.
The judgment summons proceedings was instituted by the Board to enforce the judgment of the Zamfara State High Court delivered on 21/4/2020 against Unity Bank Plc which adjudged the Bank liable to the Board on account of wrongfully or unlawfully withholding of the sum of N493,024,184.97 standing to the credit of the Board way back in 2011 plus accrued interest on same in the exercise of an alleged right of lien or set off against the debt owed to the Bank by Zamfara State Government.
After the said judgment Unity Bank PLC exercised its right of appeal to the Court of Appeal Sokoto division and applied to the High Court for an Order staying execution of the said judgment. On 5/8/2020 the High Court in a considered ruling granted a conditional Order staying the said judgment on the note that Unity Bank PLC should deposit the judgment sum plus accrued interest with the Chief Registrar of the High Court within 14 days who shall in turn lodge same into an interest yielding account with any of the Banks there to await the outcome of the appeal filed before the Court.
The judgment summons proceedings was instituted by the Board to commit the duo of the Bank’s Zamfara State Branch Manager and Operations Manager to prison after the bank failed to comply with the Order of conditional stay.
The two branch officers of the bank had earlier on 14/9/2020 appeared in court to be examined on oath to show cause why they should not be committed to prison for default in paying the judgment sum as ordered. In the expected ruling of the court scheduled for 28/9/2020, the court may either discharge the two bank officers if it is satisfied that they have shown lawful cause for not complying with the judgment and order or commit them to prison if it is not satisfied that they have shown lawful cause for failure to comply with said judgment or order.
