PAYING THE DEAD's DEBT: Court Orders Late Billionaire, Sonny Odogwu’s Estate To Pay Access Bank N26b Judgement Debt

Almost four years since he died at 87, the family of late Billionaire industrialist, Chief Sunny Odogwu is still paying a huge debt he left behind. A Federal High Court sitting in Lagos on Friday ordered the Estate of the late Ide Ahaba of Asaba to pay Access Bank Plc N26billion as a judgment debt, in compliance with a November 3, 2015, judgment. Justice Daniel Osiagor affirmed the bank’s N26b claim as canvassed by its counsel, Mr. Kemi Balogun, SAN. The judge dismissed the preliminary objection filed by the Estate challenging the bank’s claim and the court’s jurisdiction. Access Bank had instituted the suit to take over the late businessman’s Project Finance property over alleged N50 billion debt.

Access Bank and the late Sunny Odogwu's family have been in a tussle over the ownership of some properties in Lagos due to a loan default. The family of the late Odogwu had wanted to sell off properties given to Access Bank by a court for debt recovery. The initial loan granted to Odogwu and his companies is N26 billion which has accumulated interest to bring it to N50 billion.

Justice Osiagor affirmed the 2015 judgment of Justice Saliu Saidu in suit number: FHC/L/CS/1633/14, which ordered the defendants to pay their outstanding indebtedness of N26b to Access Bank. The judge invalidated a consent judgment in which parties in the suit agreed on the payment of a lower sum of N12 billion as a full and final payment.

He noted that the said consent judgment was made by a court which was functus officio, thus lacked the jurisdiction to grant such order. The defendants, in their preliminary objection, had argued that having taken benefit of the consent judgment, the plaintiff bank could not turn around and ask the court to set aside same.

However, Access Bank in its claim before the court said the consent judgment was flawed in that it was delivered by a court that lacked jurisdiction to entertain it as of the time it was entered as a consent judgment. The bank, through Balogun, said the matter having been placed in the bossom of the Court of Appeal, the lower court that entered the consent judgment as the judgment of the court was functus officio (lacked jurisdiction). Balogun contended that the only court that had the power to adjudicate on such matter at that level was the appellate court.

Justice Osiagor, upholding the Senior Advocate’s argument, nullified the consent judgment entered by Justice Rilwan Aikawa, on the ground that the court lacked jurisdiction to grant such order as it was functus officio of the matter at the time. The judge then affirmed the earlier judgment of Justice Saidu which ordered the defendants to pay their outstanding indebtedness of N26 billion.

He dismissed the N12 billion consent judgment granted by Justice Aikawa, noting that courts of coordinate jurisdiction cannot grant a consent judgment after a matter has been decided. He also ordered that the payment must be less all amounts earlier paid by the judgment debtor to the bank. The court also awarded a cost of N200,000 against the defendants.