A Federal High Court sitting in Lagos has granted Wema Bank of Nigeria Plc the power either by itself or through its appointed Receiver Manager take over and preserve the property of CMB Maintenance & Investment Company used as security to obtain loan that has not been paid, pending the determination of the substantive suit.
Joined as co-defendant in this debt recovery suit is the Managing Director of CMB Maintenance & Investment Company, Kelechuckwu Mbagwu.
The order of the court was as result of an application filed and argued before the court by Barrister Norrison Quakers, SAN.
In an affidavit sworn to by a Relationship Manager of Wema Bank, Mr Henry Alakhume, the deponent averred that by an application dated 24th of March 2014 and signed by Kelechukwu Mbagwu, Managing Director of CBM Maintenance & Investment Company applied to Wema Bank for a loan Project Finance Facility in the Real Estate sector, to finance the completion of 17 units of detached duplexes Pearl Garden Estates at Sangotedo, Lagos State.
The security for the facility was agreed to be legal mortgage of seven units of detached duplexes, three blocks located at Pearl Nuga Estate, along Cardinal Anthony Olubunmi Okojie Road, Sangotedo Lekki expressway Lagos State valued at N347.2million being develop.
Six other legal mortgages were also created in respect of the properties in the security specified.
The defendants drew down on the facility but have since failed to meet repayment obligations and as at January 2017 the sum of N226,496.441.09 only was outstanding and unpaid by the defendants.
The defendants have refused and neglected to pay their indebtedness despite restructuring it several times while interest has continued to accrue on the debt and the bank has therefore exercised its right to appoint a receiver/manager as provided under the respective Deeds of Legal Mortgages.
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Consequently appointed Mr. Gerard Onyiuke as receiver/manager of the mortgaged properties.
Mr Alakhume averred further that CMB Building Maintenance & Investment Company Limited has become insolvent and unable to repay its debts and that Kelechuckwu Mbagwu as the guarantor as well as the alter ego of the company is similarly unable to repay the debt and the said debt can only be repaid upon the realization of the charged assets of the company.
The appointment of the receiver/manager requires the sanction and protection of the court to be able to physically take over and assume control of the mortgaged properties as the defendants will not willingly cede the control of the said mortgaged properties to the receiver/manager unless they are compelled.
The orders sought have become necessary because the mortgaged properties are at the risk of being dissipated by the defendants and are also deteriorating in value so long as Receiver/Manager is unable to take effective control and if Receiver/Manager does not assume control urgently the amount realisable from the properties if at all may not meet the repayment of the sum owed by the defendants.
After listening to the argument and submission of Mr. Norrison Quakers SAN, the presiding judge, Ayokunle Faji while restraining Kelechukwu Mbagwu his company and their agents and privies from doing anything obstructing the receiver/manager in his lawful execution of his duties or function, granted Wema Bank Plc through itself and by its duly appointed receiver/manager to take over and preserve the properties of the company’s properties used as security for loan.
Thereafter, Justice Faji while adjourning till 21 June 2019 for further hearing also ordered the Inspector General of Police, through the officers and men of the Police Force to provide the bailiffs of the court and the Receiver/Manager with the necessary police protection while they carry out the orders of the court pending the determination of the motion on notice.
