Court Restrains R.T. Briscoe from Withdrawing Funds in Banks

Davidson Iriekpen

The Federal High Court in Lagos has restrained an automobile and generator company, R.T. Briscoe Nigeria Plc, from withdrawing its funds in any bank over an alleged N2.5billion debt owed Diamond Bank Plc.

Justice Ibrahim Buba granted an order of interim injunction restraining the company, its directors or management from “operating, withdrawing from or otherwise tampering with the respondent’s funds in any bank of financial institution within Nigeria.”

The order, the judge said, will subsist until the bank’s application for the appointment of a provisional liquidator for the company is heard and determined.

Justice Buba also made a consequential order compelling the affected banks where R. T. Briscoe has accounts to furnish Diamond Bank or its firm of solicitors with details of credit outstanding in the company’s accounts within seven days.

The judge further barred R.T Briscoe from alienation, dissipating or transferring its fixed and moveable assets, properties, machinery and tools of trade until the bank’s application for appointment of a liquidator is determined.
Diamond Bank, in its winding-up petition, said R.T Briscoe is its long-standing customer since May 2012.

It said it availed the bank global facilities which include an overdraft facility, letter of credit facility and term loan, which were all availed in tranches.
The facilities, the bank said, were for the purchase of Toyota brands of vehicles and spare parts, importation of Atco brand of generators and compressors, purchase of a piece of land in GRA, augmentation of its working capital, among others.

The bank said following a Central Bank of Nigeria (CBN) directive on non-performing loans, it made a demand for the recovery of total overdue loan obligations of N712,488,921.67 and a total outstanding indebtedness of N2,529,687,108.86 as at last June 3.
Diamond Bank said it agreed to restructure the credit facilities by revising the repayment schedule, yet the company “willfully failed and/or neglected to liquidate the indebtedness in accordance with the strict adherence to the revised schedule.

“The respondent is still heavily indebted to the petitioner in the sum of N2,478,284,729.88 as at May 2016,” the bank told the court through its lawyer Kunle Ogunba (SAN) of Insolvency Forte.

The bank said R.T Briscoe is “insolvent and unable to pay its just and legitimate debts,” and should, therefore, be wound-up by the court in line with sections 409(1) and 410 (1) (b) of the Companies and Allied Matters Act of 2004.
But, R.T Briscoe has urged the court to discharge or set aside the interim order of injunction because the bank allegedly suppressed and misrepresented material facts to the court.

The company said the Companies Winding Up Rules require the petitioner to make the application for injunction on notice rather than ex-parte.
“There are third party interests being adversely affected by the interim order of injunction granted against the respondent,” R.T Briscoe said.
The company denied being indebted to the bank to the tune of N2.5billion as at May “or at any time.”

It claimed to have been servicing its loan obligations monthly despite awaiting the final approval for the loan restructuring.
R.T Briscoe said its business has been “crippled” by the order as no staff or contractors or suppliers could be paid.

“It is in the interest of justice to set aside and discharge the interim order of injunction,” the company added.
Justice Buba adjourned until July 8 for hearing.