Union Homes Savings & Loans in trouble over customer’s N757m deposit

An Ijebu -Ode based business man in Ogun state, south west Nigeria, Afolorunsho Yinusa, has dragged Union Homes Savings and loan before a Lagos high court over the failure of the finance house to pay him N757,499,795.57 being the outstanding balance of his fixed deposit with the mortgage banking institution.
Meanwhile the Claimant has also filed a winding up petition against the Union Home loans and saving Plc before a Federal high court in Lagos urging the court to wind up the company over the inability of the company to pay its debt. 
In a statement of claim filed before a Lagos State high Court sitting at Ikeja, Mr Afolorunsho Yinusa alleged that by a confirmation slip dated 11 of November, 2013,he deposited a fixed deposit investment with the Union Home Savings and loan Plc  in the sum of N484,808,401.19 to be fixed for a period of 90 days payable on the 9th of February 2014 when the fixed deposit investment would have matured.
The said fixed deposit investment was alleged to have been  duly drawn down and fully utilized by the Defendant after fulfilling the conditions provided for the investment.
However at the maturity of the investment, the defendant defaulted and failed to pay the principal sum and the accrued interest on the investment which amounted to the sum Of N502,739,670.82
A demand letter for transfer of fund was made to the Business Manager Union Homes Savings And Loans Plc, Victoria Island Brand, 14, Emuri Okunola Street, Off Ajose Adeogun Street, Victoria Island, Lagos
As a result of the failure of Defendant to respond, the Claimant engaged the services of certified Accountants, Messrs Rotimi Odunkoya & Associates to demand for the payment of his total investment with interest from the Defendant.
He further wrote to the Defendant not to roll-over the investment when it matured on the 23rd November, 2015, and that the defendant should remit a total sum of N602,017,499.77k  being the accumulated principal and interest into his Guaranty Trust Bank account Ijebu-Ode Branch but the Defendant deliberately failed and / or neglected to effect his. 
The Claimant stated further that defendant’s wilful refusal to meet its obligation to him exposed him  to serious financial inconveniences and embarrassment.
The tenure of the investment has elapsed yet the Defendant still wilfully refuses to pay the investment despite several letters of demand from him to do so.
At a meeting attended by the two parties, it was agreed that the defendant would pay the sum of N50million  to the Claimant out of the total indebtedness on / or before 31st August, 2016 and another N50million  would be paid by September, 2016.
At a meeting of 13th June, 2016 the Executive Director representing the defendant at the meeting Mr. Ifeanyi Uzoh specially stated and I was told that the N50,000.00  Payments of August and September, 2016 would be made from part of the money the Defendant’s would collect from First Bank Plc. However, when the money was paid by First Bank Plc to the Defendant, the money was diverted to other purposes instead of part-settlement of the Defendant’s indebtedness to the Claimant. 
The defendant has made several promise including Asset-Swap arrangement with the Claimant without any genuine intention of fulfilment.
The failure and refusal of the Defendant to refund the Claimant’s fund since the year 2015 has adversely affected the Claimant who has been unable to meet his demands thus exposing his business to serious sufferings due to the negligent act of the Defendant.
The defendant have no defence to this legal action. 
Consequently, the Claimant Claims against the defendant are as Follows;
The sum of N757,499,795.97 being the outstanding balance on the fixed deposit with the Defendant as at 12th October, 2017.
Interest on the said sum at the rate of 12.5% from the 13th October, 2017 until judgement is delivered and thereinafter at 10% until liquidation.
Cost of this legal  action.  
Meanwhile, Union Homes Savings and loans Plc has filed an application before the court urging the court to dismiss the winding up petition filed against it, as an abuse of court process, since the case filed before Lagos high Court forms the ground of the petitioner for seeking a winding up order of Union homes and loan Plc for alleged inability to pay its debt.

Related posts