Justice Dehinde Dipeolu of the Federal High Court in Lagos has ordered a prominent bank to pay the liquidator of Addy Finance and Investments Limited a total of ₦39 million and $53,078, with 20% pre-judgment interest and 10% post-judgment interest per annum. The decision followed the court’s finding that the bank had unlawfully retained the company’s funds, despite a court order restricting account withdrawals.
The ruling was delivered on April 28, 2025, following an application in the ongoing winding-up proceedings, identified as suit number FHC/L/CP/1577/2021. The liquidator, represented by counsel T. Salman, sought the release of company funds and the submission of account statements. The court agreed, referencing relevant provisions of the Companies and Allied Matters Act (CAMA) 2020 and the Companies Winding-Up Rules 2001.
Evidence presented by the liquidator included an affidavit from the bank in an earlier proceeding, which revealed account balances of ₦30,455,571.65, ₦8,652,845.56, and $53,078.04 at various times. However, despite these admissions, the bank later denied the existence of these funds. It made payments to some of the company’s creditors, without informing the liquidator or acknowledging the winding-up status.
The court criticised the bank’s inconsistent actions, such as negotiating settlements and releasing company funds—₦16 million of which went to bank staff—without notifying either the liquidator or the Economic and Financial Crimes Commission (EFCC). It also highlighted the bank’s failure to deliver crucial documents to the liquidator until after payments had already been made.
Justice Dipeolu ruled that the bank, as custodian of the accounts, was responsible for proving that the claimed balances did not exist, and found it had failed to meet this burden. Attempts by the bank to rely on garnishee and forfeiture orders made after the winding-up proceedings began were declared void under Section 577 of CAMA.
The court further condemned the conduct of the bank’s legal counsel during the proceedings and ordered the immediate release of the funds. The bank was also instructed to provide certified statements of the company’s accounts from November 2, 2021—the date the winding-up process began—up to the date of the judgment.
