The Court of Appeal sitting in Lagos has overturned a N507 million judgment previously awarded against Guaranty Trust Bank (GTB) in a dispute involving Chashar Farms Ltd, a company linked to former Akwa Ibom State Governor Udom Emmanuel.
In a ruling delivered on Monday, Justice Okong Abang nullified the earlier decision of the Lagos State High Court, characterizing the lower court’s findings as a miscarriage of justice against the financial institution.
The appellate court’s intervention follows a 2022 judgment that held GTB liable for the alleged unauthorized transfer of N507 million from the farm’s account.
The lower court had previously ruled in favor of Chashar Farms via a summary judgment, a procedure that concludes a case without a full trial after the respondent alleged that the funds were mismanaged through collusion between bank staff and a third party.
However, Justice Abang determined that the trial court erred by resolving complex allegations of fraud and forgery without hearing oral evidence or allowing for cross-examination.
The Justice observed that the lower court relied heavily on an extra-judicial statement made to the police by one Oyetola O., which was never formally tested in court.
This reliance, according to the Court of Appeal, denied GTB its constitutional right to a fair hearing under Section 36 of the 1999 Constitution.
Justice Abang also identified contradictions regarding the authorization of the funds, noting that the bank vehemently denied wrongdoing and raised questions about the company’s cooperation during the initial investigation.
The Judge noted a police report indicating that the company’s director, Udom Emmanuel, had not honored invitations for questioning during the criminal probe into the missing funds.
The Court of Appeal emphasized that since the case involved serious allegations of forgery including claims that withdrawal instruments were not signed by the company’s director the burden of proof required evidence beyond a reasonable doubt under the Evidence Act. By failing to allow the bank to present its side of the story through a formal trial process, the lower court was found to have acted prematurely.
As a result of the ruling, the N507 million judgment has been set aside, and the appellate court has ordered the suit to be remitted to the Chief Judge of the Lagos State High Court for reassignment to a different judge.
The case will now commence afresh, allowing both parties to call witnesses and present evidence in a full hearing. In addition to the reversal, the court awarded costs of N1,000,000 in favor of Guaranty Trust Bank.