Guaranty Trust Bank (GTB) has secured a significant legal victory as the Court of Appeal in Lagos has overturned a N507 million judgment previously awarded to Chashar Farms Ltd., a company associated with former Akwa Ibom State governor, Udom Emmanuel.

The appellate court, in its ruling on Monday, granted GTB's appeal, nullifying the lower court's decision. Justice Okong Abang, who delivered the judgment, stated that the initial ruling occasioned a "miscarriage of justice" against the bank.

Appeal Court's Reasoning

Justice Abang highlighted that the trial court's judgment was contradictory. He noted that the N507 million, which a police investigation suggested was transferred from the respondent's account through collusion, was the same amount awarded to the respondent.

The judge emphasized that the matter involved complex disputes of fact. He held that the trial court should not have granted a summary judgment without a full trial where oral evidence could be presented and cross-examined.

"The trial court was clearly wrong in making those findings at the interlocutory stage without hearing the parties on the merits," Justice Abang stated.

Furthermore, the court observed that the trial court had relied on an extra-judicial statement made to the police by Oyetola O. This statement was not subjected to cross-examination, which denied GTB its right to a fair hearing, contrary to Section 36 of the 1999 Constitution.

The Appeal Court concluded that the issues raised in GTB's counter-affidavit and statement of defence were too complex for a summary judgment procedure. Chashar Farms Ltd. had claimed the N507 million was invested with the bank and subsequently mismanaged, a claim GTB denied.