Port Harcourt: Union Bank to Pay Firm N100m over Breach Of contract
Betexx Industrial and Marine Service Limited has instituted a legal action against the Union Bank of Nigeria Ltd, before an High Court sitting in Port Harcourt, capital of Rivers State.
In a suit No. PHC/7/2014, the company is demanding for a total sum of one hundred million naira (N100, 000, 000) from the Station Road Port Harcourt branch of the Union Bank of Nigeria Ltd being damage for breach of contract to advance overdraft and loan facilities to finance the company’s Dealer/Haulier contract with NNPC Retail Limited thereby leading to cancellation of the contract.
In her submission the Betexx Industrial and Marine Service Limited through her counsel, Chief O. T. K. D Amachree recalled that in December 2009, the company has appointed the dealer/Haulier for NNPC Buguma Floating Mega Station (FMS) by the Management of the NNPC Retail Limited, adding that because the firm did not have the funds to execute the job it approached, the Bank for over draft and loan to the tune of N60, 000,000.
The counsel further recalled that the Bank to ascertain the genuiness of the transaction wrote to the NNPC, alleging that his client was made to deposit the sum of three million naira (N3, 000,000) to cushion the facility.
According to the firm, having satisfied all necessary requirements such as collateral and others as demanded, but the bank failed to regularize the transaction until the NNPC Retail Ltd issued a final notice to make the mandatory payment on the 9th July, 2012, sadly pointing out that on July 31st, 2012, 31 months after the initial offer of December 2009, the NNPC terminated the provisional appointment for failure to fulfill the mandatory condition of the engagement.