The Court of Appeal Lagos Division, has overturned a ₦507 million judgment previously awarded against Guaranty Trust Bank (GTBank), delivering a significant legal victory for the financial institution in its dispute with 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, describing it as a “miscarriage of justice.” The appellate court held that the lower court erred in granting summary judgment in a matter riddled with complex factual disputes that required full trial proceedings.
The dispute stems from claims by Chashar Farms that ₦507 million invested with the bank was mismanaged and unlawfully transferred. However, the appellate court noted contradictions in the trial court’s reasoning, particularly that the same sum allegedly traced by police investigations to unauthorized transfers was also awarded to the claimant without proper evidentiary scrutiny.
Judgement Details
Justice Abang criticised the reliance on an untested extra-judicial statement made to the police, emphasizing that it was not subjected to cross-examination. He ruled that this undermined the bank’s constitutional right to fair hearing under Section 36 of the 1999 Constitution. The court further stressed that allegations involving fraud and forgery must meet the evidentiary threshold of proof beyond reasonable doubt under the Evidence Act.
The appellate court also raised concerns over the conduct of the claimant during the investigation, noting that Udom Emmanuel reportedly failed to honour a police invitation. This, according to the court, weakened the credibility of claims that the transactions were unauthorized.
Concluding that the case involved “serious triable issues,” the court set aside the High Court judgment and ordered that the matter be reassigned to another judge of the Lagos State High Court for a full trial. It also awarded ₦1 million in costs in favour of GTBank.
The ruling effectively resets the litigation process, requiring both parties to present oral evidence and call witnesses. However, either party retains the option of escalating the matter to the Supreme Court.
This decision adds to a growing list of appellate victories for GTBank in high-value financial disputes, reinforcing judicial caution against the use of summary judgment in cases involving complex factual and evidentiary issues.
