A Federal High Court in Lagos has ordered a commercial bank to pay a sum of N811,174,229.25 to the Chief Registrar of the court, pending the determination of a suit filed by Shago Payments Limited against the bank and two others.
Justice Chukwujekwu Aneke granted the order on an ex parte application by Dr. Oladapo Olanipekun, SAN, on behalf of the fintech company. The court directed the bank to file an affidavit within three days of receiving the order, detailing its compliance with the payment and serving same on the plaintiff’s counsel.
The court also issued an interim injunction restraining the bank from taking any step or action in furtherance of alleged chargeback claims between June 2003 and August 2023, including combining or setting off credit balances in the plaintiff’s accounts or distraining any other account held by or connected with Shago Payments Limited.
Furthermore, the court restrained the bank from misrepresenting Shago Payments Limited as a debtor in respect of debit to its accounts arising from chargeback claims between June 2023 and August 2023, whether by watch-listing it on the Credit Risk Management System List of the Central Bank of Nigeria or by any other means.
The suit filed by Shago Payments Limited against the bank and two others alleges that the bank caused unauthorized debits amounting to N940,321,051.58 from its account, with N811,174,229.25 representing debits as a result of chargeback fraud. The plaintiff also alleged that the bank was negligent and fraudulent in managing its account and breached multiple duties and obligations.
Shago Payments Limited is seeking damages in the sum of N10 billion and an order directing the bank to pay it. The case has been adjourned to August 1, 2024 for mention.
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