Fakoyejo OlalekanThe United Bank for Africa (UBA) has been ordered by Justice Ayokunle Faji of the Lagos Federal High Court to pay its former employee, Olufunke Bella, N1 million for illegally and unlawfully closing her account.
Justice Faji said UBA breached the fundamental rights of Bella by freezing her account without a court approval after she was relieved from work. The judge ordered the Tony Elumelu-led commercial bank to apologise to the former worker.
Bella, a former Recovery Officer of UBA, filed a lawsuit marked, FHC/L/CS/1001/2021, against UBA after the company accused her of forgery and freeze her account without giving her a fair hearing before a court.
She told the court in a filing on August 11, 2021, that the illegal action of UBA has resulted in untold hardship and financial embarrassment.
It was learnt that Bella’s account was frozen between 1 April 2021 and 9 September 2021. She couldn’t withdraw from the account and UBA made the decision without informing her or seeking approval from the court.
Bella asked that the court rule that the action of UBA was illegal and unlawful, as well as grant N1 million damage fee in her favour against UBA.
She prayed to the court for “a declaration(s) that UBA’s act of freezing her account number 1002525153 with the respondent and also blacklisting her Bank Verification Number (BVN) for an alleged forgery without affording her fair hearing before a court of competent jurisdiction or court order permitting the UBA’s action is illegal, unlawful, a breach of banker and customer relationship and most importantly, a breach of her fundamental rights as guaranteed by Sections 36(1) & (2) and 44(1) of the Constitution of the Federal Republic of Nigeria.
“That assuming without conceding, there is any order of a court of competent jurisdiction to freeze her account with UBA and to blacklist her Bank Verification Number, such cannot operate in perpetuity without affording her any opportunity to be heard or defend herself against the alleged crime made against her or the court’s findings that culminated into making such order that affects her.
“An order directing UBA to de-freeze her above-stated account with the respondent forthwith.
“An order directing the respondent to write a letter of apology to the Applicant for its gross misconduct, reckless act, and illegality which has put the Applicant into untold hardship and financial embarrassment.”
The former employee also demanded, “The sum of N1 million, as aggravated and punitive damages against the respondent in her favour.”
All of Bella’s demands were granted by Justice Faji in a judgement delivered on 10 March 2023, where the judge said: “In the instant case, the applicant contends that by freezing her account and backlisting her BVN without allowing her to be heard, her right to a fair hearing and to own property were infringed upon by the respondent.”
The judge further stated that: “The applicant alleges that her account was frozen in May 2021. She wrote two letters neither of which was responded to.”
According to Justice Faji, “There was thus no plausible explanation for the denial of access to the account of the Applicant between 1st April 2021 and 9th September 2021,” adding that she was also not informed or invited to make representations before those steps were taken.
He said the actions of UBA were not based on any law or regulation., as a result: “I, therefore, find that the applicant was denied access to her account without any justification and that in so doing she was also denied a fair hearing in the process leading to the freezing of her account.”
“It is not in dispute that the applicant was put out of her funds for the period during which she was denied access to her account.
“It has not been disputed that the applicant was a former employee of the respondent, who was relieved of her employment and thereafter filed an action which was amicably resolved with the Respondent making a payment to the Applicant.
“It, therefore, seems more than a coincidence that the applicant’s account was frozen by her former employer without any explanation or valid reason.
“In the circumstances, I award damages of N1, 000, 000.00 in favour of the applicant payable by the respondent, forthwith,” the judge said.
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