Doyin Pharm Battles UBA Over Trapped Money

By Akin kuponiyi

Doyin Pharmaceuticals Company has dragged United Bank for Africa Plc. before a Federal High Court in Lagos to recover its money trapped in the liquidated City Express Bank Plc.

Also joined as co-defendant is the Nigerian Deposit Insurance Corporation, the liquidator of City Express Bank.

In a statement of claim filed before the court, Doyin Pharmaceuticals Nigeria Ltd. averred that it operated an account number 57004832 with City Express Bank, prior to the revocation of the bank’s license by the Central Bank of Nigeria in January 2006.

Sequel to the revocation of the banking license of City Express Bank Plc, the bank was handed over to the United Bank for Africa Plc. on “Purchase and Assumption” basis thereby making City Express Bank part of UBA Plc.

On taking over City Express Bank Plc., UBA called all account holders with the bank, to verify their accounts with the UBA.

The plaintiff averred that it took part in the verification exercise carried out by officials of UBA who confirmed the balance in the Doyin Pharmaceuticals account to be N64,254,000.02.

However, in a letter written to the plaintiff by UBA, the bank claimed that it had been advised by NDIC that the plaintiff’s account was not part of the liabilities incurred by the bank but part of the liabilities under the control of the NDIC and that all further enquiries about the said account should be directed to the NDIC, but the plaintiff averred that it is not indebted to City Express Bank or NDIC.

In view of this, the plaintiff claims against the defendant are as follows:

A declaration that it is not indebted to City Express Bank Plc.

An order of the court directing the defendant, particularly UBA, to grant unrestricted access to the plaintiff the sum of N64,254,000 which was the balance in its account as at the time of takeover by the UBA.