Court Adjourns for Adoption of Written Addresses in RCN Networks, GTB Suit

Justice E.O. Ashade of the Lagos High court, sitting in Yaba yesterday adjourned till May 28, 2024 for the adoption of final written addresses in the suit filed by RCN Networks Limited and its Managing Director, Alhaji S I Nuraini Abiola against Guaranty Trust Bank and five others over alleged fraud committed on the document used to secure judgement against the claimants.

At yesterday's sitting, the claimants' counsel, Dr. Charles Adeogun-Philips cross-examined a legal officer with the GTB, Nicholas Igwebuike on the alleged discrepancies noticed in the Deed of Assignment, and the Deed of Tripartite Mortgage presented before Justice Chukwujekwu Aneke of the Federal High Court to secure the judgement.

RCN Networks Limited and Alhaji S I Nuraini Abiola (Claimants) had instituted the Suit against the Defendants alleging that the bank based on the judgement of the court appointed a receiver manager over the Deed of Tripartite Mortgage, and registered same at the Land Registry Directorate, Alausa based on the alleged fraudulent documents.

The crux of the matter was as a result of the inability of the claimants to repay the sum of N970,743,041.15 facility given to it by the bank.

As a result of the default on the part of the claimants, GTB approached the Federal High Court, Lagos seeking for an order to enforce it's rights under the agreement by taking over the security used in securing the facility.

After hearing the banks' application and the counter claim filed of RCN Network Limited, Justice Aneke granted the reliefs sought by GTB.

However, dissatisfied with the ruling of the court, NRC filed an appeal at the Court of Appeal.

However while the appeal was still pending, RCN filed the suit at the Lagos High Court alleging that the judgement at the Federal High Court was secured with forged documents.

Meanwhile, in a petition dated 23rd March, 2020 written to the Central Bank of Nigeria by the Managing Director of RCN Networks Ltd, Nuraini Agboola Abiola, the Petitioner said that he maintained a banking relationship with the Respondent for many years. In the normal course of business activity, the Petitioner applied for and obtained secured loan facilities from Respondent at various times between 2007 and 2009

According to the petitioner the modus operandi of such transactions was that the Petitioner would cause myself to secure such facilities using a range of landed properties owned by myself.

He stated on 16th April 2009, the Respondent GTB granted a line of credit in the sum of Five

Hundred and Eight Million Naira (N508,000,000.00) to the Petitioner, in which he submitted the title documents to his Oyinkan Abayomi Drive property to GTB on the basis that the said documents will be perfected in the event that the line of credit facility was utilised.

However, the said Line of Credit facility was never fully utilised.

In September 2009, the petitioner RCN also had a separate transaction with GTB for the issuance of an Eight Million US Dollar ($8,000,000.00) Letter of Credit for the importation of Harris Military Communication equipment for onward supply to the Nigerian Army.

"In return, I released the title documents to my Banana Island and Osborne Phase II properties to GTB and executed all the Tripartite Legal Mortgage (TLM) documents in favour of GTB.

As part of the conditions prescribed by GTB for the issuance of the said letter of credit facility,