TUNs Farm vs Skye Bank: What Made Court to Seal off 4 Bank Branches in Osogbo

Breach of Contract: Court seals four Skye Bank in Osogbo
—–Towed away cars, generators,

Transactions were on Thursday  halted in the three branches of Skye Bank, including the pay point office inside LAUTECH Osogbo, Osun state capital, as the state High Court sealed off the bank for breaching over N3billion contract with TUNS Holdings  Limited.

Court officials had stormed the four branches of Skye Bank around 8.20 a.m when the bank was set to be receiving customers, preventing transactions and other activities.

All the staffs were sent out, while cars, generators and other movable properties of the banks were moved away.

The Honda Accord with registration number Lagos KTU 373 AY, belonging to the Regional Manager of the bank in Fagbewesa Street, Osogbo was also towed away.

However, investigation revealed that the bank had entered into agreement with TUNS holdings in 2005 when the bank offered a credit facility of N414,000,000 to Tuns and the money was accepted to develop the Abuja property projected to earn the company a net income of N1.152 billion.

It was gathered that Skye Bank turned around and released only N150 million, a development that reportedly frustrated the TUN’s project and caused damages for huge loss of investment.

According to the judgment signed on January 12, 2016 and obtained by our correspondent, the court is to seize any money, bank notes, cheques, bills of exchange, promissory notes, bonds or securities for money, found within the Osogbo Judicial Division of the bank.

In a Certified True Copy of judgment delivered by Justice A. O. Ogunlade on March 14, 2014, the court held that “I am convinced by overwhelming evidence laid before me that the Defendant (Skye Bank) breached the fundamental terms of the contract in facility 11 of Exhibit PA1 without lawful justification and I hereby make an award of special damage in full to the Claimant, in the sum of N421,384,000, being the loss the Claimant suffered due to the refusal and failure of the Defendant to comply with the terms and conditions of the contract of 17th August, 2005.

The court further held that “the Claimant through one of the paragraphs of its statement of claim has established the fact that the breach of the terms and conditions of the contract in facility 11 of Exhibit PA1 caused the Claimant’s director and shareholders myriad of psychological trauma and emotional break down.

“I am in agreement with the assertion of the Claimant, considering the credible and in some areas uncontroverted evidence led before me that general damage should be awarded in this suit.

“I consider the sum of N25 million adequate, as general damages to the Claimant by the Defendant in this suit.

Also, in the appeal filed by Skye Bank against Tuns International Holdings Ltd and Tuns Properties Ltd, dated May 8, 2015, Justice Mohammed Danjuma of the Court of Appeal held that the Appeal lacks merit and is ‘hereby dismissed.’

The court held that “Judgment of the High Court of Osun State delivered by Justice Aderibigbe is hereby affirmed.”

Three High Court judges, Justices Oyejide Falola, A. O. Ogunlade and Adeigbe Aderibigbe, had presided over the matter, given similar judgment.

Justice Falola on November 20, 2015 awarded N2.473 billion in favour of the claimant (Tuns Farms), N150 million as general damages, while Justice Ogunlade awarded N421,384,000 and N25 million damages against the defendant (Skye Bank).

However, all efforts of the Skye Bank to win the case have been in futility as Justice Danjuma subsequently dismissed their petition on June 4, 2015.