Court Orders N39m, $53,000 Refund to Addy Finance’s Liquidator in Winding-up Suit

Wale Igbintade

A Federal High Court in Lagos has ordered the immediate recovery of over N30.4 million, N8.6 million, and $53,000 for the liquidator of Addy Finance & Investments Limited, following a petition filed in the ongoing winding-up proceedings of the company.

In a ruling delivered on April 28, 2025, Justice Dipeolu granted reliefs sought by the liquidator in an application dated May 8, 2024, filed in Suit No. FHC/L/CP/1577/2022 between Nduka Nwabuwa & 3 others vs. Addy Finance & Investments Limited. 

The court also directed the bank to provide certified statements of account for Addy Finance from November 2, 2021, to the date of the ruling.

Represented by T.Y. Salman, SAN, the liquidator argued that Addy Finance maintained several accounts before the winding-up order was made on November 2, 2021. 

A court order on March 30, 2022, had restrained the bank from releasing funds or allowing withdrawals pending the appointment of a provisional liquidator, who was eventually appointed on July 5, 2022. 

The liquidator confirmed that no withdrawals were made from the accounts during this period.

Despite repeated requests, the bank failed to provide full certified statements of account.

However, affidavits filed by the bank’s counsel revealed credit balances of N30,455,571.65, N8,652,845.56, and $53,078.04 in the company’s accounts.

The liquidator argued that under Sections 576 and 577 of the Companies and Allied Matters Act (CAMA) 2020, any transfer of company property or execution against company assets after a winding-up petition is void.

Justice Dipeolu ruled that garnishee orders relied upon by the bank were invalid, as they were obtained nearly a year after the winding-up process commenced. 

The court also criticised the bank for entering into a consent judgment in a separate case and making payments to creditors, including its own staff – despite being aware of the winding-up order and without informing the court.

In the judgment, Justice Dipeolu held that the bank failed to discharge its burden of proving that the funds did not exist. 

The court further noted that a party cannot seek equitable relief when its own conduct has created the need for such relief.

Accordingly, the court ordered the bank to pay the following amounts to the liquidator: N30,455,571.65 in account 1022829343 as of December 1, 2022, N8,652,845.56 in account 1023718518 as of March 1, 2023, and $53,078.04 in account 3002888166 as of March 1, 2023

The bank was also ordered to deliver certified statements of account for Addy Finance covering the period from November 2, 2021, to the date of the ruling.

The court, however, declined to grant one of the petitioners’ reliefs on the ground that it was vague.