Ecobank To Appeal Judgment In N5.5bn Honeywell Flour Suit

The Ecobank Transnational Incorporated (ETI), on Friday, said it will appeal the judgement delivered by Justice Ayokunle Faji of the Lagos Federal High Court in the protracted N5.5bn suit between it and Honeywell Group, a customer, saying it disagrees with the decision.
A statement by the Ecobank Group (operating as ETI), recalled that the disputed loan was taken over by ETI Specialized Resolution Company Ltd (ESRC), a recovery resolution vehicle of the Ecobank group.
In the suit, Honeywell Flour Mills Plc, and its sister companies: Anchorage Leisures Ltd and Siloam Global Limited, against Ecobank, urged the court to hold that they are not indebted to Ecobank, having paid N3.5bn based on a concession purportedly given by the bank.
Justice Faji in his judgement delivered on Friday, May 31, 2019, ruled that since Honeywell paid in line with the agreement reached at the meeting of December 2013, it is no longer indebted to Ecobank.
ESRC, however, averred that the judgement did not take into consideration salient facts put before the court, noting that a debtor should be made to pay its full debt having failed to pay as and when agreed.
A spokesperson for ESRC said that the company will pursue recovery of the debts owed by the Honeywell companies to the logical conclusion through the courts, as the return of depositors’ funds is key to ensuring the sanctity of agreements and viability of continued support and growth of local businesses by Banks.