₦60 Million Award for Unlawful Account Restriction: Important Takeaways – Tunde Adejumo

By Tunde Adejumo Esq

On the 20^th day of December 2024, the Court of Appeal delivered its judgment in APPEAL NO: CA/A/CV/155/2023, GUARANTY TRUST BANK (GTB) V. EBISI AUGUSTINE CHIJOKE & ANOR. The Court dismissed the appeal and affirmed the decision of the High Court of the Federal Capital Territory, Abuja, which awarded the sum of ₦60,000,000 as damages to the 1^st Respondent for the unlawful restriction and freezing of his bank account.

Some of the key takeaway from the judgment include:

1. OBLIGATION TO COMPLY WITH COURT ORDER:

A Bank is obligated to comply with a Court order directing the restriction or freezing of an account. It is not the Bank’s role to question the validity of the order or whether it was issued by a Court of competent jurisdiction.

2. CUSTOMER NOTIFICATION:

The Bank must promptly notify the customer that their account has been restricted or frozen and provide the reason for the action.

3. PROMPT COMPLIANCE WITH COURT ORDER LIFTING RESTRICTION:

Upon receiving a Court order directing the removal of the restriction or freeze, the Bank must immediately lift all such restrictions on the account.

4. THE BANK’S RESPONSIBILITY TO CHALLENGE COURT ORDER:

In specific circumstances, the Bank may be required to take steps to have the order freezing or restricting the customer’s account vacated or set aside.

5. FUNDAMENTAL RIGHTS CLAIM:

The unlawful restriction of a person’s bank account constitutes a cause of action that can be pursued as a fundamental rights claim in a Court of law.

6. CONSTITUTIONAL BREACH:

The unlawful restriction of a person’s bank account constitutes a breach of the right to property under Section 44(1) of the Constitution of the Federal Republic of Nigeria 1999 (As Amended).

This judgment emphasizes the delicate balance that Banks must maintain between fulfilling their obligation to comply with legal directives and upholding the fundamental rights of their customers. While adherence to Court orders is a legal and professional duty, Banks must also act responsibly to ensure that their actions do not infringe upon the rights of account holders. Striking this balance requires a commitment to procedural integrity, timely communication with customers, and proactive measures to address any ambiguities in legal directives. By doing so, Banks not only fulfill their legal obligations but also build trust and confidence among their customers.

Tunde Ahmed Adejumo

3^rd day of January 2025