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His Lordship, Hon. Justice I. G. Nweneka of the National Industrial Court of Nigeria, Enugu Judicial Division on Monday, 21st May 2018 in a judgment dismissed claims and awarded counter-claim of N N4, 338, 774.36 as together with interest at the rate of 6% per annum until the judgment sum is fully liquidated to be paid by the claimant in favour of ECOBANK NIG. LTD.
By a Complaint filed on 24th June 2016, the Claimant claimed against the Defendant among others: A declaration that the Claimant is still the employee of the Defendant until his employment is determined in accordance with his contract of employment and An order on the Defendant to pay the Claimant his arrears of salaries from 19/2/2014 till when the Claimant employment shall be determined in accordance with his terms of contract of employment.
The Defendant’s case is that the Claimant was its staff. On 10th July 2012 he applied for a personal loan of N3, 750,000, which was granted. The Claimant executed the Employee Credit Application and Approval Form, and the Employee Credit Facility Agreement. The loan was fully disbursed to the Claimant and was for a tenor of 48 months at 12% flat per annum. At the time of Claimant’s exit from the Defendant on 20th February 2014, his total indebtedness was N1, 725, 167.49.
By letter dated 11th December 2015, the Defendant made demand for liquidation of the Claimant’s debt which was N4, 338, 774.36 as at that date. The net debit balance as at August 2016 was N4, 984, 974.32 which debt remains unpaid in spite of repeated demands.
The Claimant’s only defence to the claim is that the repayment of the loan is tied to his salaries.
After reviewing the argument of the parties, the Court Presided by Hon. Justice I. G. Nweneka expressed thus;
“I have considered all the processes filed in this suit and the submissions of learned Counsel for the parties. Before addressing the merit of the case, I would like to note that although the Claimant filed a defence to the counterclaim he did not file a witness’ deposition. Also, he did not participate in the trial and did not present any evidence in defence of the counterclaim. His averments in the defence to counterclaim are not tantamount to evidence and cannot be so construed. Averments in pleadings to be worthy of consideration by the Court must be proved by credible evidence subject, however, to any admissions by the other party.
From admissible evidence before this Court, the following facts are established:
- The Claimant applied for N3, 750,000 loan on 10th July 2012 to meet personal needs and completed the Employee Credit Application and Approval Form, exhibit J. The loan was processed and approved on the same day and booked at 12% flat per annum. Consequent upon the approval, the Claimant executed the Employee Credit Facility Agreement, exhibit K.
- The loan was fully disbursed to the Claimant and was for a tenor of 48 months with total monthly repayments of N98, 751.88 by direct debit from his monthly salary, exhibit J.
- At the time of Claimant’s exit from the Defendant on 20th February 2014, his total indebtedness was N1, 725, 167.49, exhibit F.
- By letter dated 11th December 2015, exhibit H, the Defendant informed the Claimant’s Solicitors that the Claimant’s indebtedness to it as at that date was N4, 338, 774.36 and made demand for its liquidation.
Interestingly, the Claimant did not dispute the fact of the loan or the terms thereof.
In the final analysis, the counterclaim succeeds in part. For the avoidance of doubt, judgment is entered in favour of the Defendant against the Claimant for the sum of N4, 338, 774.36 together with interest at the rate of 6% per annum from today until the judgment sum is fully liquidated. The claim for compound interest fails and is hereby dismissed. Cost follows event. Cost of N20, 000 is awarded in favour of the Defendant against the Claimant.
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