The Court of Appeal, Lagos on Monday overturned a N507 million judgment previously awarded to Chashar Farms Ltd, a company linked to former Udom Emmanuel, ruling in favour of Guaranty Trust Bank (GTB).
Delivering judgment, Justice Okong Abang nullified the Lagos State High Court’s February 8, 2022 ruling, citing a “miscarriage of justice” against the bank. The appellate court found that the trial court had issued a summary judgment without hearing the parties on the merits, despite serious disputes of fact.
Justice Abang noted that the trial court relied on an extra-judicial statement made to the police by Oyetola O., which had not been cross-examined, and awarded the same sum that was allegedly transferred from Chashar Farms’ account. He ruled that this approach denied GTB a fair hearing, contrary to Section 36 of the 1999 Constitution.
The appellate court highlighted that allegations of forgery, fraud, and unauthorized withdrawals raised by Chashar Farms required proper proof beyond reasonable doubt under Sections 133(1) and 133(2) of the Evidence Act. It also noted the respondent’s failure to cooperate with the police investigation during which the company’s director, Udom Emmanuel, did not honour an invitation for questioning.
“The trial court was clearly wrong in making those findings at the interlocutory stage without hearing the parties on the merits,” Justice Abang stated. “Accepting the respondent’s claims without a proper hearing of the bank side occasioned a miscarriage of justice.”
The court set aside the lower court’s judgment, ordered the suit remitted to the Chief Judge of Lagos State High Court for reassignment to another judge, and awarded costs of N1 million in favour of GTB. The case will now commence afresh with full hearing and evidence presentation, unless parties seek further redress at the Supreme Court.
The ruling adds to a series of favourable appellate decisions secured by GTB in high-value financial disputes, reinforcing the bank’s legal standing in complex commercial litigation.
