Standard Chartered Bank Drags Two DANA Companies To Court Over Alleged Unpaid N355 Million Debt
OpenLife reports that in a bid to recover a debt of N355,000,0000
STANDARD CHARTERED BANK NIGERIA LIMITED has dragged two limited liability companies DANA MOTORS LIMITED and DANA PLAST LIMITED Before a Federal high court in Lagos
In a statement of claim filed before the court,by a Lagos lawyer Dr Niyi .O.Olopade SAN,The Bank avers that sometimes in the year 2012, at the instance of the Dana Motors Limited, the Plaintiff advanced credit facilities in the sum of NGN200,000.000.00 overdraft and $5,000,000.00 import letter of credit limit and $4,000,000.00 as loan and to provide cover to the facility granted the Vandana FZCO; a sister company of Dana Plast Limited Limited.
Similarly, around the same time in the year 2012, at the instance of the Dana Plast Limited the Bank advanced credit facilities in the sum of N200,000,000 overdraft which was drawn by the company
Due to repeated defaults by the defendants to liquidate the aforesaid facilities,the facilities were restructured by the bank at the instance of the each of the defendants vide a letter dated 21st April,2015 and subsequently by another letter dated 14th May,2019.
As at 30th December 2016 Dana Motors’s Indebtedness to the bank on the credit facilities granted by the bank as loan, stood at a negative balance of N389,142 584.10 While the sum of $2,646,041.34 remained outstanding on the facilities granted by the bank to provide cover to the facility granted Vandana FZCO, with interests still accruing on the facilities
The bank avers that on the part of the Dana Plastic Limited as at 30th December 2016, the company indebtedness to the Plaintiff stood at a negative balance on N315,489,875. 00 on the credit facilities granted by the bank as loan, with interests still accruing on the facilities.
The bank avers that Due to the Defendants inability to liquidate the aforesaid facilities in accordance with their respectively facility letters
the bank was constrained to file Winding Up Petition against the defendants in SUIT Nos FHC/LICP/630/2021 and
Defendants FHC/L/CP/640/2021 on 21st June, 2021
The bank further stated that upon receipt of the Winding Up Petitions the Defendants approached the bank to explore amicable settlement of the debts,thereafter the Defendants jointly offered to pay the bank the total sum of NGN1,100,000,000.00 to the bank in installments. from 20th September 2021 – 20th October, 2022, as full and final settlement of the debt owed by the two companies in respect of the aforesaid outstanding facilities which necessitated the filing of the said petition.
The bank avers further that Dana Plastic by it’s own letter dated 5th July,2021 reiterated thier offer to pay the bank the sum of N1,1000,000,000.00 but reduced the payment duration to between 20th August 2021-20th October,2022 as against earlier 20th September 2021-20th,2022
In pursuance of the aforesaid offer and acceptance, the Defendants jointly paid the bank the total sum of NGN745,000,000.00 out of the agreed sum of NGN1,100,000,000.00
leaving a balance of NGN355,000,000.00 unpaid till date despite the expiration of the payment duration.
The bank states further that the sum of NGN745,000,000.00 paid by the Defendant pursuant to the compromise, is inclusive of the proceed of sale of the property situate at Penthouse, No. 19, 9th Floor, Block A. Admiralty Towers, No 8. Gerrard Road, Ikoyi, Lagos mortgage to the bank by the Defendants as security tor tne facilities and which was sold at the rate of N234,000,000.on the request of the defendants.
The Plaintiff states that due to compromise of the original cause of
action in the aforesaid suits and the part payment of the sum of
NGN745, 000,000.00, the bank was constrained to withdraw the Petitions before the Federal High Court on 16th February, 2026 and same was accordingly struck out by the Court, with the Defendants still owing the Plaintiff the balance of NGN355,000,000.00.
The Plaintiff states that without liquidating the outstanding NGN355, 000,000.00, due to the bank, immediately after the winding up petition were withdrawn and struck out by the Court, the Defendants
requested the bank to issue it a letter of non-indebtedness, which the bank declined and reminded the Defendants of their outstanding
Obligations and the need to liquidate same before making such
request.
The Plaintiff states that the Defendants have never denied their
Indebtedness to the bank in the sum Of NGN355,000,000.00 and
has acknowledged in several correspondences and affidavits deposed by one Sodiq Olorun-Oje on 25th March, 2025 on behalf of the Defendants in the aforesaid winding up petitions.
In further acknowledgment of the outstanding debt, the Defendants pleaded with the bank to extend the payment duration but still failed to pay the bank the said overdue debt
despite the bank magnanimity and indulgence to assist the Defendants to pay.
When the Defendants repeatedly failed to pay the outstanding debt of NGN355,000,000.00, after several extension of the payment duration by the bank, the Defendants requested for further waiver from the outstanding sum and offered to pay the Plaintiff NGN100,000,000.00 which offer the Plaintiff rejected and countered with the sum of NGN 105,000,000.00 to be paid within 14 days which the Defendants failed to do .
Upon the striking out of the winding up petitions the bank again demanded payment of the outstanding sum of NGN355,000,000.00 which have since become due, from the Defendants but the Defendants have failed, refused and or neglected to pay same till date.
Consequently, when it became obvious that the Defendants will not yield to the demand for payment of the outstanding balance, the Plaintiff instructed its Solicitors in the Firm of Niyi Olopade & Co., to take lawful action to recover the said sum.
The Plaintiff states that the outstanding sum of NGN355,000,000.00 owed by the Defendants are part of depositors funds and the continuous refusal of the Defendants to pay same despite the Plaintiff’s magnanimity,has put the bank under undue scrutiny by it’s statutory regulators.
Standard Chartered bank claims against the Defendants jointly and severally are as follows:
The sum of N355,000,000.00 (Three Hundred and Fifty-Five Million Naira) being the outstanding balance of the agreed compromised banking facilities granted by the bank to the Defendants.
Interest on the said outstanding sum at the rate of 28% per annum from 20th July, 2022 until final liquidation,and Costs of this legal action.
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