Justice Chinyere Ani of the Enugu State High Court, on Wednesday, awarded the sum of N225 million to Ohha Microfinance Bank Limited, Enugu against Sterling Bank Plc for fraud and criminal conversion of depositor’s fund in its fixed deposit account.
A branch manager of the bank in Enugu, Mr Oliver Anidiobi, who was recently convicted and sentenced to eight years imprisonment for fraud was the bank’s manager where Ohha Microfinance bank kept N219 million depositors funds in a fixed Deposit account as it’s corresponding bank.
The ex-manager, however, issued a fake “Fixed Deposit Certificates” to the Ohha Microfinance bank.
Angered by the development, Ohha Microfinance Bank, through its’ lawyer Olu Omotayo filed a civil suit against Sterling Bank Plc on October 3, 2019, in Suit No. E/857/2019, OHHA MICROFINANCE BANK V. STERLING BANK PLC.
The Plaintiff (Ohha) had claimed against the Defendant (Sterling Bank) among others a N600 million representing damages for breach of contract. N300 million interest for N138,900, 838.89 for the first fixed deposit and also the accumulated interest thereon and also N80,134,062.61, for the second fixed deposit and also the accumulated interest on it.
In response the defendant in the case, Sterling Bank Plc argued through his lawyer O.J. Uchenna that it was not bound by the acts of Oliver Anidiobi,
its’ manager and denied having any of the Fixed deposits of the plaintiff on its’
record and that its’ manager Oliver Anidiobi lacked authority to act for it in that regard.
But, the presiding judge, Justice Chinyere Ani, delivering judgement on suit
The Court in over one hour Judgment delivered by Hon. Justice Chinyere Ani agreed with the submission of the Plaintiff’s Counsel that the Fixed Deposits Certificates given to Ohha Microfinance Bank by the defendant were authentic because Anidiobi was the manager of the defendants’ Market road branch at the time and his act as an agent of Sterling Bank Plc is binding on the bank.
The Court held that in the statement of Anidiobi to the Economic and Financial Crimes Commission (EFCC) which was admitted in evidence in this suit, admitted collecting the sum of N219 million from Ohha Bank, which he diverted to personal use and issued certificates he forged to the Microfinance bank.
Justice Ani, held that Anidiobi as the bank manager of Sterling bank at that material time acted on behalf of the defendant in the course of normal transaction of the bank.
The Court further held that “the issue to be considered is whether Sterling Bank as the principal is liable for the fraudulent act of the agent (Oliver Anidiobi).
“It is the considered opinion of this honourable that Anidiobi, as a branch manager of the defendant has full authority to deal with customers which the plaintiff is one and as such this very transaction in issue is lawful. Oliver Anidiobi acted within the course of his work and the Plaintiff trusted him and rely on him as the bank manager of the
defendant.
“There will be chaos in the system if customers cannot rely on representation of a bank manager in the course of banking transactions.
“The Court therefore awarded the sum of N225 million as damages to the Plaintiff, Ohha Microfinance Bank Limited.”
Justice Cyprian Ajah of the same Enugu State High Court, had on November 2, 2021, in Charge No. E/162c/2019, between Federal Republic of Nigeria’ versus Anidiobi Oliver Chukwuka, convicted Anidiobi in 32 count-charge levelled against him by Economic and Financial Crimes Commission (EFCC).
He was subsequently, jailed for eight years imprisonment.
