Justice Ibrahim Ahmad Kala of a Federal High Court, has ordered banks in Nigeria to stop recognizing freezing/ Post No Debit orders issued by the Magistrate and other lower court’s in Nigeria.
The judge also urged the police hierarchy and commands across the country of the need for its officers to observe and ensure due process, and satisfied the requirement of the law in the investigation of funds standing in credit of the account of suspect perceived to be derived from the proceeds of crime.
The judge also ruled that the investigative powers of the Police do not and can never include the power to freeze an account without a valid Order of court of competent jurisdiction.
To this end, Justice Kala made a clarion call to the various head of courts in the country of the need to issue out circular for the stoppage of this malfeasant in the grant of such ex-parte orders by the inferior courts under their administrative goal. And also counseled banks and other financial institution in Nigeria to issue out general circular across all their branches not to recognise exparte order obtained from any inferior court (be it Magistrate, Area and or Customary Courts) restricting money standing on the bank account of customer in Nigeria or seeking for transaction reversal in such account, same having now been substantially, pronounced as being outside the jurisdictional competence of the inferior courts, and by so doing, both the bank and the Nigeria Police Force will safeguard themselves from unnecessary litigation and its attending consequences.
Justice Kala made the above orders and advice while delivering judgment in a suit numbered FHC/L/CS/07/2025 between a businessman, Aiman Mahfouz and Fidelity Bank Plc
The applicant, Aiman Mahfouz, instituted the suit sequel to series of Exparte orders placed on his accounts with the bank by the police.
The businessman, through his lawyer, Clement Alaye, consequently asked the court for some reliefs against the bank.
The orders sought by the bank includes: “a declaration that the respondent either acting directly or through their subordinates or anybody whatsoever, has no right or vires in law and under the Constitution of the Federal Republic of Nigeria 1999 (as amended) and the African Charter on Human and People’s Rights, to restrict the accounts of the Applicant with Respondent without following the due process of the law.
“A declaration that the purported Order of Magistrate Court of Mararaba Nasarawa State holden at Mararaba Gurku in Suit No. M419/2024 between Inspector General of Police v. Fidelity Bank & Anor dated October 18 2024 relied upon by the respondent to violate the rights of the Applicant is null and void.
“An order of Court restraining the respondent from intimidating, threatening and arresting the Applicant under the guise of complying with Magistrate Court order on account Number 6052473736 being operated by the applicant with the Respondent.
“An order of the Court directing the respondent to release the restrictions placed an the appplicant’s bank account Number 6052473736 with the Respondent fidelity Bank Plc) and any of the apphecant’s other account number
“An order of perpetual injunction restraining the respondent by themselves: their officers, servants, agents and privies from (1) the pursuant of an excuse whatsoever and fabrication of evidence to harass, intimidate, restrain or justify the arrest restrain of the Applicant with respect to the Account Number 6052473736 or to restrict the said account in order to impugn Applicant’s fundamental rights ta Property, dignity of human person, liberty and movement as guaranteed and protected respectively by the Constitution of the Federal Republic of Nigeria 1999 (as amended), the African Charter on Human and Peoples’ Rights (Ratification and Enforcement) Act, Cap. AY Laws of the Federation of Nigeria, 2004.
“Exemplary damages and compensation in total sum of N200 million, for injury suffered by the applicant as a result of the infringement of his fundamental right to property occasioned by the respondent directly or through their subordinates or anybody whatsoever, an for the illegal and unlawful freezing restriction of his accounts.”
Meanwhile, while the bank did not filed any counter to the suit, its lawyer, George Lekwa, approached the court today, with a motion to set aside the proceedings conducted so far in the suit, as well a motion to hear the bank’s preliminary objections.
The judge however, struck out the motion, on the ground that it is an abuse of court process.
Delivering judgment on the substantive suit, the judge after reading through the applicant’s processes and cited several prethoras of legal authorites held that: “I have taken time to review the ex-parte order of the Magistrate Court, Mararaba Garuku and considered the facts available to it in grant of the order, and it does appear to me that the order has taken almost a year and this has no doubt, adversely affected the Applicant and therefore, ought to be discharged.
In the light of all the findings I have made above in this application, the Applicant has, as against the respondent, a right, ex debito justitiae to have the restriction/post-nodebit in his account Number 6052473736 domiciled with the Respondent’s bank, set aside by this Honourable Court, the Applicant having proved his case to be entitled to such relief in protection of his right as enshrined in Section 44(1) of the 1999 Constitution (as amended).
“Accordingly, the purported ex-parte Order of the Magistrate Court, Mararaba Garuku, Nasarawa State in Suit No. M419/2024, between Inspector General of Police v. Fidelity Bank & Anor dated October 18th, 2024, executed against the respondent by the Nigeria Police Force restricting the Applicant’s bank account ad finitun, in violation of his fundamental right is null and void and same is hereby set aside.
“It would have followed naturally that the applicant is entitle to compensatory damages for the breach of his fundamental right specifically, against the Nigeria Police Force, being the enablers that secured the purported order of the Magistrate Mararaba and executed same against the Respondent restricting the Applicant’s account that prevented him with money standing to his credit in his account from accessing the money.
“Unfortunately, police are not made a party in this instant suit. whereas, in BABATOLA v. ALADEJANA (2001) 12 NWLR (PT. 728) 597 the apex court at P. 614 Paras. B-D, held thus: “The Court cannot give a judgment against a person who will be affected by its decision if such a person is not made a party or has no opportunity of defending tre suit This as because, the court has no jurisdiction to decide the fate of a person or a matter concerning him when such a person is net made a part to the action.”
“Consequently, these reliefs relating to the award of exemplary damages to the applicant which ought to have been granted against the Police that are not parties to this suit are accordingly turned down.
“Before concluding deliberation in this application, I wish to draw the attention of the Police hierarchy and commands across the states of the need by it officers to observe or ensure the observance of due process and satisfied the requirement of the law in the investigation of funds standing in credit of the account of suspect perceived to be derived from the proceeds of crime. The investigative powers of the Police do not and can never include the power to freeze an account without a valid Order of court of competent jurisdiction, id est, the High Courts. See Access Bank V. Barr. Anthony Kelechi Agbasiere (supra).
“Similarly, I wish to make clarion call to the various head of courts in the country of the need to issue out circular for the stoppage of this malfeasant in the grant of such ex parte orders by the inferior courts under their administrative goal. Ditto on the need for the Respondent’s bank, nay any other financial institution in Nigeria to issue out general circular across all their branches not to recognise exparte order obtained from any inferior court (be it Magistrate, Area and or Customary Courts) restricting money standing on the bank account of customer in Nigeria or seeking for transaction reversal in such account, same having now been substantially, pronounced as being outside the jurisdictional competence of the inferior courts, and by so doing, both the bank and the Nigeria Police Force will safeguard themselves from unnecessary litigation and its attending consequences.
“To this end, this application is therefore, meritorious and same is granted as par above. As costs follows event of the trouble taken by the Applicant in successfully prosecuting this case, I award the sum of N500, 000 costs against the Respondent and in favour of the Applicant.”
