Justice Mohammed Yususa of the Federal High Court in Lagos yesterday dismissed applications by Dana Impex Limited, a member of the Dana Group, seeking to strike out a suit against it by Sterling Bank Plc.

The firm had prayed the court to strike out the suit or extend the time within which it could respond to interim orders made by the judge.

The suit was in respect of N1.7billion loan, which Dana Impex allegedly owed Sterling Bank.

Justice Yunusa held in his ruling that the application did not lay a proper foundation for the striking of the action.
The judge stated that the temporary orders he made are still in force. “The interim orders still subsist,” the judge ruled.

Justice Yunusa had granted Sterling Bank’s Receiver/Manager, Mr. Kunle Ogunba (SAN) leave to “take over and preserve” the company’s mortgaged property at Plot C, Block 11, Ilupeju Industrial Estate, Apapa-Oshodi Expressway, Lagos.

The judge, also restrained the company or its agents from withdrawing or tampering with funds in any of its accounts “under whatever name or guise in any bank or financial institution in Nigeria.”

The court also reinforced its order made against Dana Drugs Limited, in a sister case before him, also filed by Sterling Bank.

In the order, dated June 9, Justice Yunusa granted an interim injunction restraining Dana Drugs or its directors from tampering with its funds in any bank or financial institution pending the determination of the application for the appointment of a provisional liquidator.

The court also directed any banks keeping Dana Impex’s money to furnish Sterling Bank or its lawyer Ogunba details of the outstanding credit in the account.
Sterling Bank said it granted Dana Drugs an overdraft facility of N200million, and also gave Dana Impex a loan of N1.5billion.

It said, the company, after the tenor, “could not liquidate the overdraft facility.”

The bank said Dana Impex guaranteed the facility granted Dana Drugs through a tripartite legal mortgage, adding to obtaining the N1.5billion loan, which companies with the Dana Group allegedly benefited from.
But the companies denied owing Sterling Bank the money, saying part of the facility had been repaid.