Nigerian businessman drags Dubai bank to court

National Bank of Fujairah PJSC

By Akin Kuponiyi

In a bid to safeguard his business interest against alleged excessive and bogus interest charges, a Dubai based Nigerian businessman, Adedoyin Adeyinka alongside his two companies UNICO MARINE DWC LLC, and ELIZABETH SHIPPING LTD have dragged the National Bank of Fujairah PJSC, before a Federal High Court in Lagos, South West Nigeria.

The National Bank of Fujairah PJSC, is based in Dubai, United Arab Emirates,

In a statement of claim accompanied with statement on oath of Mr. Adedoyin Adeyinka filed before the court on behalf of the plaintiffs by Nigerian International lawyer, Ikechukwu Ukadike, the plaintiffs stated that by a facility agreement dated 28th November, 2016, the National Bank, as lender agreed to provide two facilities jointly for vessels namely MT. “LADY ELIZABETH” and MT “CLOVER SKY” jointly in the sum of AED 26,141,050, equivalent of USD 7,113,210.

He said out of the above facility, a total of USD3. 850.000 was lent by the bank for the refinancing of the MT. “LADY ELIZABETH” while the balance was for a separate MT “CLOVER SKY”

He added that by a valuation report of the MT. “LADY ELIZABETH” carried out by the bank, the bank valued the MT. “LADY ELIZABETH” VESSEL) for a total of USD 5,500,000.,while the defendant bank refinanced the MT. “LADY ELIZABETH” in the sum of approximately USD 3,850,000.

The plaintiff said facility was to be repaid over 9 years and that by virtue of the said facility, a ship mortgage was created for the MT. “LADY ELIZABETH” in favour of the bank and subsequently registered in Liberia as a first preferred Liberia ship mortgage.

He stated that by another offer letter dated 29th March, 2018 the defendant bank offered to restructure the facility for another 10 years under similar terms and conditions

The following documents are all pleaded in support of this application:

1.Credit facilities Agreement

2. First preferred Liberian ship mortgage

3 .Share security Agreement

4. Memorandum of particulars of a first Liberia Ship mortgage. 5.ertificate of ownership and encumbrance of a vessel registered under the Liberian flag.

6. Letter of amendments to banking facilities. 7.Guarantee unlimited. 8.Latter of the 1st bank dated 29th March.

The said MT “LADY ELIZABETH” as well as the shares of the two plaintiff Companies were pledged as security for the mortgage.

After the said facility was granted the plaintiffs made several payments to the bank towards liquidating the said facility up to USD1,722,855.

Consequently, the plaintiffs were urging the court to order the bank to refund to them overpaid interest already charge and collected by the defendant bank from them in the sum of USD 85,500.00 and a declaration that the plaintiffs are entitled to equitable right of redemption of the mortgaged security herein (the vessel MT “LADY ELIZABETH”)

The plaintiffs are seeking a declaration that the right of the mortgage to enforce the said mortgage had not arisen.

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