A High Court of the Federal Capital Territory (FCT) has imposed a fine of N85 million against Zenith Bank Plc and the Nigeria Police Force (NPF) for freezing one of the bank’s customers’ accounts by relying on an invalid court order.The court also ordered the bank to immediately unfreeze the account domiciled in its branch at 63 Usuma Street, Maitama, opposite Transcorp Hilton Hotel, and publish a public apology to the customer – Abhulimen & Co – in two national newspapers and on its website.
Justice S. U. Bature issued the orders in a judgment in which he held, among others, that the bank’s decision to freeze the customer’s account based on a supposed order by a Magistrate Court, but without notifying the said customer, was illogical and a betrayal of the banker-customer relationship between the parties.
Justice Bature noted that it was unfortunate that a major financial institution with a Legal Department, supposedly manned by lawyers, would claim to have acted based on an invalid order by a Magistrate Court that lacked the jurisdiction to entertain any banking-related case, including issuing orders for the freezing of a bank account.
The judgment delivered on July 16, but sighted on Thursday, was on a suit marked: FCT/HC/CV/2194/2024, filed by Paulyn O. Abhulimen (SAN), with Zenith Bank and the Nigeria Police Force (NPF) as defendants.
Abhulimen had sued through the law firm of Kehinde & Partners LP, claiming that, in early 2024, after being unable to access the account of her firm, Abhulimen & Co, and make transactions with it, she discovered that the bank had placed a post-no-debit (PND) on it.
Justice Bature, in the judgment, found that the bank acted on an invalid order made by a court that lacked the requisite jurisdiction. The judge faulted the failure of the bank to inform the claimant about its decision to freeze her company’s account, describing it as a breach of the duty of care it owed to its customers.
“The defendants are hereby ordered to jointly and severally pay the sum of N60 million to the claimant as general damages for the embarrassment, psychological trauma, financial distress, emotional stress, and grave inconveniences suffered by the claimant due to the defendants’ actions. The defendants are hereby ordered to jointly and severally pay the sum of N25 million to the claimant as cost of this action,” Justice Bature said.