THE Court of Appeal Lagos division Wednesday reserved ruling in an appeal by the Zamfara State Government against the judgment of a Federal High Court, Lagos ordering it to pay over N3.1 billion debt.

The appellant also prayed the court to set aside a garnishee order, attaching the state’s money in all banks, pending the determination of the substantive appeal.

Justice Okon Abang of a Federal High Court had in September 2015, ordered the applicant to pay the judgment sum to Ecobank Nigeria Limited, being it’s outstanding indebtedness to the bank.

The judge issued the order while delivering judgment in a suit filed by Ecobank Nigeria Limited against Zamfara State Government.

Other defendants in the suit are; Zamfara State’s Attorney-General, the state Ministry of Finance; Accountant-General of the Federation; Attorney-General of the Federation and Central Bank of Nigeria.

Dissatisfied with the ruling, the applicant had appealed against the judgment and urged the appellate court to set it aside.

Addressing the court, counsel to the applicant, Mr. Abiodun Owonikoko, argued that while the appeal was still pending, Ecobank went ahead to secure garnishee order freezing the account of the state in all banks.

He told the court that because of the freezing order, all activities in the state have been paralysed, adding that the state could no longer pay its staff.

Citing a plethora of authorities, Owonikoko argued that it was wrong for the lower court to garnishee account of a government institution without obtaining a fiat from the office of the Attorney-General.

He urged the court to allow the application and set aside the garnishee order.

In his reply, counsel to Ecobank, Mr. Kunle Ogunba (SAN) submitted that garnishee of a debtor’s account is an acceptable procedure in the Nigerian legal system.

Ogunba argued that the application to set aside the garnishee order is misconceived and urged the court to refuse it.

The appellate court presided over by Justice Sidi Bage, thereafter reserved ruling on the application.