By Modupe Gbadeyanka
A Court of Appeal sitting in Benin City, Edo State has directed the Bank of Industry (BoI) to vacate the premises of Austin Laz and Company Limited.
Justice Mudashiru Nasiru Oniyangi, in a judgment dated May 17, 2018, upturned the ruling of a lower court that gave the investment bank the authority to take over properties of the ice block machine maker.
In 2011, Austin Laz and Company went to the BoI for a N120 million five-year loan to facilitate the setting up of a new production.
Chief Executive Officer of the firm, Mr Austin Lazarus Asinmonye, said the loan was approved by the lender, but was not released in full.
This, Mr Asinmonye stressed, hindered the completion and take-off of the new production plant, leaving him to suffer for it.
On the ground of disagreement between him and the BoI, his company was sealed by the bank two years into the five-year term loan.
He further said four other companies belonging to him were also sealed through a lower court ruling citing failure to repay the loan instalment.
In its ruling on the matter, the Appeal Court set aside the judgment of the Federal High Court in Benin City delivered on July 6, 2015, holding that the trial court ruling in favour of BoI was premature and incompetent.
The court further awarded a cost of N100,000 in favour of the appellants (Austin Laz Company Ltd and Austin Lazarus Asimonye) and against BoI, the respondent.
Mr Asinmonye is a former National Vice President of the Manufacturers Association of Nigeria (MAN), Western Zone.
