Firm Seeks N2bn From Bank For Contract Breach

A Lagos State High Court, has adjourned till June 5, a suit by Infinity Sacks and Beverages, seeking N2,076,801,430.42 from Stanbic IBTC as damages from an alleged breach of contract.
In the suit field by its counsel Olumide Sofowora (SAN), before Justice A. M. Lawal, the firm said it suffered economic misfortune from the breach.
According to a December 23, 2016 statement of claim, it said, it received approval for a N934,029,835 loan for factory expansion from the Bank of Industry (BoI) Ltd on August 19, 2014.
BoI disbursed a bank guarantee as one of the conditions for the loan and the firm sought this from Stanbic Bank and was not issued until December 22, 2015.”
BoI disbursed N864, 420,000 into the bank’s   account  in the firm’s name on May 9, 2016 but according to the firm, Stanbic Bank did not inform it until May 17, 2016.
The firm said, it immediately mandated the Bank to bid for foreign exchange for the purchase of the machinery for its expansion.
It claimed that the bank put stumbling blocks on the way of tying the BoI loan to its loan portfolio granted to the firm.
Infinity Snacks and Beverages claimed further that, when the bank agreed to bid the needed foreign exchange, it said there was no foreign exchange supply in the market.
According to the statement of claim, it discovered that the bank promised to secure foreign exchange for the firm “were all a ploy to frustrate it from benefitting from the BoI facility of N864,420 million.”
The firm is contending that the bank’s delay in providing the guarantee caused it “severe loss as the foreign exchange rate rose drastically during the period due to the Federal Government’s deregulation of the forex market.”
In one instance, it alleged that Stanbic Bank breached its duty of care “by its refusal to carry out the firm’s instruction and by its decision to place a lien on the firm’s funds which amounts to an unauthorized freezing of the firm’s account without lawful authorisation.
In another instance, it alleged that the bank, traded “with the N864,420.000 meant for expansion of the firm’s business for several months without payment of any interest.