Court Orders Guaranty Trust Bank [GTB] To Pay Dr. Ajala, SAN, N1m, For Unauthorized Withdrawals

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*Says Banks Have A Duty To Safeguard Funds In Customer’s
Account

A Magistrate Court sitting at Federal Capital Territory, Abuja,
has ordered Guaranty Trust bank PLC to pay the sum of I million
Naira to its customer, Dr. Sonny Ajala, SAN, as compensation for
illegal and authorized withdrawals made from his account.

Dr. Ajala, had in July, 2019 initiated a legal action against
Guaranty Trust Bank PLC, for unauthorized and illegal withdrawal of
his hard-earned money from his savings account.

Accounting to his particulars of claim sighted by
TheNigerialawyer, Dr. Ajala, SAN’s account was debited on the 28th,
29th, 30th, and 31st May, 2019, for various sums amounting to
N37,400.

He discovered the transaction on the 29th May, when he received
an alert via his email and immediately called the bank’s online
Customer Care number. Upon inquiry, he was told that the payments
were Taxify services rendered in Lagos.

He immediately instructed the online Customer Care
representative to block his debt card to prevent POS from further
transaction.

The following day being 30th, May, he submitted letter to the
Guaranty Trust Bank PLC, which was acknowledged same day by the
Bank’s branch in Gwarinpa.

On that 30th May, Dr. Ajala, SAN, still received debt from his
account amounting to N11,000, despite his earlier instructions to
GTBank to block his debt card.

He however, denied comprising his Personal Identification
Number,(PIN) and insisted that he was not in Lagos at the time of
the transaction in this case.

Dr. Ajala testified before the court that he was not in lagos at
the material time of the use of the taxify app for payment of the
ride nor does he have/use the taxify app.

It was also the evidence of Dr. Ajala before the court that
taxify app that electronic-based thereby making it possible for
GTBANK to retrieve the biodata of the client of the taxify
merchant. just like it’s easy for the taxify merchant and GTBANK
through the banking clearing system to identify the receiver of the
illegal payments for nine times from his account with GTBANK.

In defence a staff of GTBank, who is the account officer to Dr.
Ajala, SAN, said the transactions were effected using the
plaintiff’s PIN, on the website belonging to Taxify.

She also insisted that the transactions wouldn’t have been
completed without using his PIN. She also said that she is not one
of the persons authorized to view the platform where the details of
the transactions were done.

The distinctive feature of the case is that it was not mere cash
withdrawals from the account of Dr. Ajala but traceable electronic
payments for nine times via taxify app that Dr. Ajala, SAN has
never activated and he was not in Lagos at the material as Dr.
Ajala resides in Abuja with his debit card firmly in his
closet.

In a judgement on Friday, the court ordered Guaranty Trust bank
PLC to immediately refund to Dr. Ajala, SAN, the sum of N37,400
with an interest of 10% from 31st of May, 2019 to the date of this
judgment.

His Worship Nweke, in his judgment held that GT Bank had duty to
safeguard the funds of Ajala but she failed in that regard

“Going by the evidence before the court, which shows that the
plaintiff’s account was debited on the 30th, 31st of May, 2019,
despite instructions given both verbally and in writing by the
plaintiff to block the debt card, there’s no explanation given by
the defendant’s witness as to how the plaintiff’s debit card was
still used by the plaintiff or whoever he allegedly disclosed his
personal identification number (PIN), to, subsequently he had
instructed that the card be blocked.

“The defendant has the duty to the plaintiff to safeguard funds
in his account. He failed In his duty when even after the plaintiff
had reported the fraudulent transactions and demanded that his
debit card be blacklisted but the defendant failed to do so.

“The Defendant’s assertion that the plaintiff compromised his
PIN was not in any way established before the court.

“I found from the evidence before me that the Defendant was
negligent. He had a duty of care, well established which was
breached and the results were lost of funds of the plaintiff.

“I, therefore, found that the plaintiff has established his case
against the Guaranty Trust Bank.”

The court however declined to grant all the declarative reliefs
sought by the plaintiff and held that, “It has long been my view
that since declarative reliefs, only states the rights of the
parties without ordering for special actions, such reliefs should
not be brought before the court of summary Jurisdiction.

“The judgment is entered in favour of the plaintiff in the
following terms:

“GTBANK is ordered to immediately refund to the plaintiff the
sum of N37,400 with an interest of 10% from the 31st of may, 2019
to the date of this judgment.

“GTBANK is ordered to pay to Dr. Ajala, SAN the sum of 1 million
Naria(N1,000,000), as damages for negligent in handling of the
plaintiff’s account

“The court also awards 25% both Judgment sum per annum from the
date of this judgment until full liquidation.”