Bank tackles DN Tyre in $14.6m land dispute

Days after it was sued for allegedly taking over of an expanse
of land belonging to DN Tyre Plc. A new generation bank at the
weekend said the allegation was not only false but had determined
to prove before the court that the tyre firm was on a ‘digging’
adventure.

The bank specifically said it was ready to contend before a
Lagos High Court that the alleged land was liquidated to it
following DN Tyre’s alleged inability to repay facility granted to
it by the bank.

DN tyre is claiming $14.6million from the bank for the alleged
take-over of its land at Oba Akran Avenue, Ikeja, Lagos.

D. N. Tyre is asking a Lagos High Court to compel the bank and
four churches to pay $14, 659, 116 in damages and grant an
injunctive order barring them from further ‘entering, blocking,
encroaching on or further entering, building, developing the land
which is the subject matter of this case or otherwise howsoever
interfering in any manner whatsoever with the claimant’s possession
of the premises.”

But the bank said the alleged take-over of the land was “sequel
to the inability of DN Tyre to liquidate their indebtedness to the
bank as the company offered a portion of its factory complex at Oba
Akran Avenue, Ikeja to the bank in satisfaction of the loan.
Following persistent pressure and because the company was
technically insolvent with no other means of repaying the loan, the
bank accepted the offer with the intent of disposing same to
liquidate the outstanding indebtedness of the company.

A Deed of Assignment was thereafter executed between both
parties and the proceeds were applied in liquidating the loan.
“

It went on: “No sooner the transaction was consummated than some
officials of the company began making unreasonable demands from the
bank in respect of the transaction. The company resorted to threats
and blackmail and refused to deliver vacant possession as a result
created bottlenecks to frustrate the sale.

The bank succeeded in surmounting the challenge and proceeded to
register its title to the property at the Lands Registry which was
subsequently sold to the Triumphant Christian Centre, which have
been in possession since then.

“The company had petitioned the Special Fraud Unit of the
Nigeria Police on the transaction, which was dismissed based on
incontrovertible evidence provided by the bank. The company
subsequently filed a suit in court alleging excess charges and
unlawful possession, which the bank has convincingly responded to
and matter is currently pending before the Lagos High Court.

The company in all their processes filed in court never
contended that they did not transfer the property to the bank. It
is therefore mischievous to accuse the bank outside the courtroom
of illegal and forceful acquisition.

Wherefore it is apt to advise the company to channel their
energy towards proving their case in court instead of resorting to
outright dissemination of falsehood.”

The bank, however, in its consequential statement of defence
denied D.N.Tyre’s allegations, claims and damages, saying it was
not in any way whatsoever liable as claimed.

It urged the court to dismiss it as not only unconscionable,
misconceived, gold digging, frivolous, abuse of process but lacking
in merit.

Days after it was sued for allegedly taking over of an expanse
of land belonging to DN Tyre Plc. A new generation bank at the
weekend said the allegation was not only false but had determined
to prove before the court that the tyre firm was on a ‘digging’
adventure.

The bank specifically said it was ready to contend before a
Lagos High Court that the alleged land was liquidated to it
following DN Tyre’s alleged inability to repay facility granted to
it by the bank.

DN tyre is claiming $14.6million from the bank for the alleged
take-over of its land at Oba Akran Avenue, Ikeja, Lagos.

D. N. Tyre is asking a Lagos High Court to compel the bank and
four churches to pay $14, 659, 116 in damages and grant an
injunctive order barring them from further ‘entering, blocking,
encroaching on or further entering, building, developing the land
which is the subject matter of this case or otherwise howsoever
interfering in any manner whatsoever with the claimant’s possession
of the premises.”

But the bank said the alleged take-over of the land was “sequel
to the inability of DN Tyre to liquidate their indebtedness to the
bank as the company offered a portion of its factory complex at Oba
Akran Avenue, Ikeja to the bank in satisfaction of the loan.
Following persistent pressure and because the company was
technically insolvent with no other means of repaying the loan, the
bank accepted the offer with the intent of disposing same to
liquidate the outstanding indebtedness of the company.

A Deed of Assignment was thereafter executed between both
parties and the proceeds were applied in liquidating the loan.
“

It went on: “No sooner the transaction was consummated than some
officials of the company began making unreasonable demands from the
bank in respect of the transaction. The company resorted to threats
and blackmail and refused to deliver vacant possession as a result
created bottlenecks to frustrate the sale.

The bank succeeded in surmounting the challenge and proceeded to
register its title to the property at the Lands Registry which was
subsequently sold to the Triumphant Christian Centre, which have
been in possession since then.

“The company had petitioned the Special Fraud Unit of the
Nigeria Police on the transaction, which was dismissed based on
incontrovertible evidence provided by the bank. The company
subsequently filed a suit in court alleging excess charges and
unlawful possession, which the bank has convincingly responded to
and matter is currently pending before the Lagos High Court.

The company in all their processes filed in court never
contended that they did not transfer the property to the bank. It
is therefore mischievous to accuse the bank outside the courtroom
of illegal and forceful acquisition.

Wherefore it is apt to advise the company to channel their
energy towards proving their case in court instead of resorting to
outright dissemination of falsehood.”

The bank, however, in its consequential statement of defence
denied D.N.Tyre’s allegations, claims and damages, saying it was
not in any way whatsoever liable as claimed.

It urged the court to dismiss it as not only unconscionable,
misconceived, gold digging, frivolous, abuse of process but lacking
in merit.