Fidelity Bank on Monday confirmed a subsisting Supreme Court judgment involving G. Cappa and Sagecom Concepts Limited, adding that its computation puts the settlement figure at N14 billion.
The bank disclosed this in a statement on Monday, stating that the issues leading up to the judgment arose from a legacy transaction between the defunct FSB International Bank and Sagecom Concepts Limited.
The bank clarified, how- ever, that a sponsored publication of the apex court judgment has allegedly been orchestrated and syndicated in the media with the aim of embarrassing the bank.
In the bank’s statement signed by its Divisional Head, Brand & Communications, Meksley Nwagboh, it responded to a report claiming that the Supreme Court had ordered the financial institution to pay N225 billion in damages to the Nigerian firm.
Clarifying the development, the bank confirmed the legal matter, highlighting that FSB had granted a credit facility to G. Cappa Plc in 2002 for the sum of USD 3 million.
“The facility was secured with a mortgage on a property located in Ikoyi,” it added.
The official explained that G. Cappa allegedly defaulted on the repayment of the loan and, in a bid to prevent FSB from selling the mortgaged property to repay the loan, commenced an action against FSB at the Federal High Court, Lagos, seeking, among other things, to restrain the bank from selling the property.
“The Federal High Court, in its judgment, ruled that the bank, as legal mortgagor, rightfully sold the leased interest in the property to Sagecom in 2011.
“The court, however, declined to order vacant possession of the property and directed the issue of vacant possession to the Lagos State High Court,” the official add- ed, alleging that in the meantime, G. Cappa remained in possession of the property and continued collecting rents from it.
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