Company files suit against bank for alleged breach of contract

Infinity Snacks and Beverages Limited has filed a N2billion suit against a major bank over breach of contract.

Counsel to Infinity Snacks and Beverages Limited, Olumide Sofowora (SAN), in his statement of claim filed before a Lagos high court, alleged that in July 2014, it applied for a loan for its factory expansion from bank of Industry Limited and it received approval for the sum of N934,029,835.on 19th August 2014.

However one of the conditions for granting of the facility was the provision of a bank guarantee, the company then requested the bank to start processing the bank
guarantee which was issued on 22nd of December 2015, about four months after the approval of the loan by bank of industry, thereafter Bank of Industry disbursed the sum of N864,420,000 into the bank’s account in the company ‘s  name on 9th of May, 2016.

Infinity Snacks and Beverages also alleged further that they were not inform by the bank until 17th of May 2016.

Therefore, the company is contending that the delay on the part of the bank to provide the bank guarantee caused the company severe loss as the rate of foreign exchange to the Nigerian currency rose drastically during the period due to Federal Government deregulation of foreign exchange market, aside that the bank unilaterally increase the bid rate  from N 280 to $1 to N 288 to $1.

The defendant has not filed any defence.

Meanwhile the presiding judge, Justice A. M. Lawal has adjourned the suit till 5th of June for mention.