Daramola Aanuoluwapo Reporting
The Court of Appeal in Lagos has upheld a judgment ordering Union Homes Savings and Loans Plc, a subsidiary of Union Bank Plc, to refund N75.5m to Abimbola Foods Limited.
The refund is for excess charges and levies, plus interest, until the excess amounts are fully paid.
The appellate court’s decision affirms the earlier judgment of the Lagos State High Court.
The court found Union Homes Savings and Loans Plc in breach of the loan agreement with Abimbola Foods Limited.
Specifically, the court ruled that the company wrongly called up a loan of N18m before its expiration and continued debiting Abimbola Foods Limited’s current account by N16m.
The Court of Appeal also ordered Union Homes Savings and Loans Plc to release title documents of real properties surrendered as security to Abimbola Foods Limited.
Additionally, the court awarded N200,000 in costs against Union Homes Savings and Loans Plc.
In its judgment, the court described the company’s actions as “opprobrious, damning, and cruel” and warned other banks to avoid excessive and inordinate charges.