NDIC to appeal Investment Tribunal’s ruling on N5 million compensation to WMDRI Ltd

From Uche Usim, Abuja

The Nigeria Deposit Insurance Corporation (NDIC) has vowed to appeal the ruling of the Investment and Securities Tribunal (IST) where it ordered the Corporation to pay N5 million compensation to Winners Medical Diagnostics & Research Institute Limited, who applied for shares under CLAIMANT for the 2005 Public Offer of former All States Trust Bank Plc, now (ECOBANK Plc).

In its ruling, the presiding Chairman of IST, EM Elujokor, declared that it was wrong for the NDIC to classify or categorize the claim for return money for un-allotted shares regulated by ISA 1999 (repealed and re-enacted as ISA 2007) and SEC Rules and Regulations made pursuant thereto as general credits ranking subordinate to private deposits of the defunct All States Trust Bank, payable only after claims for depositors liabilities have been satisfied.

‘Order for NDIC to pay Winners Medical Diagnostic & Research Institute Ltd the sum of N5,000,000 at 2% interest above the CBN MRR from March 2006 when NDIC took over All States Trust Bank until the full payment of the principal sum. Cost of N500, 000.00 awarded in favour of Winners Medical Diagnostic & Research Institute Limited,’ he said.

Reacting, the NDIC said it was not contending the indebtedness of the defunct bank to the Claimant in respect of the share/IPO subscription fee.

‘Rather the position and contention of the NDIC is that the law on the priority of claims must be strictly followed in the distribution of the assets of the defunct bank.

‘In fact, to pay the Claimant herein as ordered by the Tribunal without following due process as prescribed by law would amount to illegality on the part of the liquidator [NDIC] as it would be a clear violation of the express provision of the laws quoted above.

‘The Tribunal also erred when it ordered the NDIC in its corporate capacity to pay the Claimant the judgment sum. Any award of damages should be against the defunct bank as it is still a legal entity until dissolved and its name struck out of the register of companies at the CAC.

‘In view of the decision of the Honourable Tribunal, which was given per incuriam the Corporation will instruct its solicitors to appeal the judgment to the Court of Appeal,’ it said in a statement.