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National Industrial Court Fines CBN For Delayed Pension Arrears Payment

National Industrial Court Fines CBN For Delayed Pension Arrears Payment

National Industrial Court Fines CBN For Delayed Pension Arrears Payment

National Industrial Court Fines CBN For Delayed Pension Arrears Payment

The Central Bank of Nigeria (CBN) was fined N100,000 by Justice Osatohanmwen Obaseki-Osaghae of the National Industrial Court, Abuja, for replacing a request for a stay of execution on the court’s decision regarding the payment of pension arrears to the former governors of Taraba State, Mr. Jolly Nyame, Mr. Uba Ahmadu, Mr. Abubakar Armayau, and Mr. Bilkisu

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Mrs. Johannah Titus, the central bank’s attorney, announced on Monday in court that she was dropping a prior motion that had been dated and filed on May 27 in favor of one that had been submitted yesterday.

Mr. Edward Erhinure, counsel for Mr. Nyame, objected to this, claiming that he had already submitted a counter-affidavit to the motion made on May 27 and had spent money filing documents in response to the application. He urged the court to grant him N1 million in costs.

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National Industrial Court Fines CBN For Delayed Pension Arrears Payment

The Taraba Government, the judgment debtor, was represented by Mr. Confidence Samuel, who told the court that he was not challenging the CBN’s plea.

In his decision, Justice Obaseki-Osaghae ordered the CBN’s attorney to move the motion to replace the previous one with the one filed on Monday and awarded the bank N100,000 in costs, which must be paid before the hearing of the Monday’s application is scheduled to take place on the next adjourned date of October 17.

CBN submitted a stay of execution application and a notice of appeal in opposition to the garnishee order issued by the same court on May 24.

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A garnishee order is a legal procedure for carrying out or enforcing a financial judgment in which money belonging to a judgment debtor that is in the hands or possession of a third party known as the “Garnishee” (typically a bank) is attached or seized by a creditor known as the “Garnisher” in order to satisfy a debt for the amount of the judgment.

In its decision, the court made an absolute order directing the CBN to pay the judgment creditors in the garnishee process.

National Industrial Court Fines CBN For Delayed Pension Arrears Payment

The judgment creditors had filed the suit against the judgment debtor, the Taraba State Government, and CBN, the garnishee debtor, through a garnishee proceeding.

The judgment debtor in a response filed an application filed on January 24, seeking the order of the court to set aside the order nisi (an order that will ripen or take effect at some set date in the future, unless the order is rescinded by a court before that date), granted in favour of the judgment creditors on December 2, 2021.

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CBN on its part had objected to the garnishee proceeding by stating that the court did not have jurisdiction to entertain the proceeding.

The garnishee proceeding had emanated from a judgment delivered by the same court on July 12, 2019.

In the judgment, the court had ordered the payment of the sum of N151.1 million, being the unpaid pension arrears of the judgment creditors.

The judgment, which was delivered by Justice Sanusi Kado, was for an unpaid pension from May 2013 to October 2015.

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National Industrial Court Fines CBN For Delayed Pension Arrears Payment

In the aforementioned verdict, the court mandated that 10 equal instalments be paid beginning in July 2019 and continuing each month until the full amount was paid in full.

The first instalment of N16.3 million was given to the judgment creditors, but they did not receive another payment until the instalment plan’s expiration in November 2021.

Out of their total N196 million in pension arrears, the judgment creditors—who were former workers of the judgment debtor—were given the sum of N45 million.


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