Justice Peter Lifu of the Federal High Court, Lagos, has declared that Zenith Bank Plc violated the fundamental right of its customer, Efoba Construction and Engineering Services Limited, when it placed a Post No Debit (PND) restriction on its account without a valid court order.
Consequently, the judge set aside the illegal restriction order and awarded a punitive damage of N5million against the Tier-1 bank and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) over the “brazen recklessness” of the bank.
Considering all the disappointments, denials of access to the account and monies legitimately owned by the applicant coupled with the psychological and physical trauma associated or occasioned by such brazen recklessness of the second respondent (the Bank), a punitive damage of N5million was awarded against the respondents severally and jointly in favour of the applicant”, the court held.
The construction firm, Efoba Construction and Engineering Services Limited, a customer of Zenith Bank Plc, had drugged the ICPC and the bank (1st and 2nd respondents respectively) before the court following a Post No Debit restriction (PND) on its account domiciled in the bank without a valid court order.
The plaintiff had in the suit prayed the court for a declaration that the compulsory taking over possession/forfeiture of its right over its bank account maintained with the Zenith Bank without any extant order of court violated its Fundamental Right.
The construction company also prayed the court to set aside the purported compulsory acquisition of monies vested in the applicant and deposited with the 2nd respondent (Zenith Bank).
The plaintiff’s counsel, Mr. Victor Opara, SAN in his submissions in the suit number FHC L/CS/1796/2020, cited a plethora of authorities to back up his arguments that the respondents’ action was illegal and a violation of the plaintiff’s fundamental right.
However, Zenith Bank in its 18-paragraphs counter-affidavit deposed to by Eyituoyo Prosper Mogbeyi, averred that it acted on the directives of the ICPC.
Delivering Judgment in the suit last week, Justice Lifu declared that restricting the firm access to Account No: 1011301207 without a court order, amounted to gross and brazen violation of the Applicant’s Fundamental Right to own, acquire and possess property.
“It is hereby declared that the Post No Debit restriction placed on the applicant’s Account No: 1011301207 by the second respondent on the instruction of the first Respondent without a valid court order from a court of competent jurisdiction duly sought and obtained, is a violation of the fundamental right of the Applicant guaranteed by Chapter IV of the Constitution of the Federal Republic of Nigeria 1999 (as amended) on the right to own and possess property.
“The restriction placed on Account No: 1011301207 belonging to the Applicant by the second respondent sequel to the ‘orders’ of the 1st Respondent as contained in a letter dated 7th of October 2019 is hereby set aside forthwith”, the Judge held.
The court also restrained Zenith Bank from further “placing any restrictions in whatever manner on the Applicant’s accounts domiciled with it except by the direct and express order of a court of competent jurisdiction specifically made for that purpose.”
“Considering all the disappointments, denials of access to the account and monies legitimately owned by the applicant coupled with the psychological and physical trauma associated or occasioned by such brazen recklessness of the second respondent, the Bank, a punitive damage of N5million was awarded against the respondents severally and jointly in favour of the applicant”, the Judge ruled.
The court also awarded N50, 000 cost against the ICPC and Zenith.
A Post-No-Debit (PND) is an instruction to a bank not to allow any debit transactions including ATMs, cheques and transfers from the bank account of account owner.