The Court of Appeal sitting in Abuja has upheld an N85 million award against Zenith Bank Plc and the Nigeria Police Force over the unlawful freezing of a law firm’s bank account based on an invalid court order.
The appellate court, in a unanimous judgment delivered on Monday by a three-member panel led by Justice Adebukola Banjoko, dismissed an appeal filed by Zenith Bank, holding that the appeal lacked merit.
The decision affirmed the July 16, 2025 judgment of the Federal Capital Territory High Court, which awarded N60 million in general damages and N25 million as costs against the bank and the police, jointly and severally.
The appeal was registered as CA/ABJ/CV/1335/2025.
The case arose from a suit filed by Paulyn Abhulimen on behalf of her law firm, Abhulimen & Co., after Zenith Bank restricted access to the firm’s account in 2024.
Abhulimen had told the FCT High Court that she discovered the restriction when she was unable to access the account or conduct transactions.
She subsequently learnt from a bank official, Obi Okafor, that a “Post No Debit” restriction had been placed on the account on March 13, 2024.
The bank reportedly relied on an ex parte order obtained by the Nigeria Police Force from a Chief Magistrate’s Court in Mararaba Gurku, Nasarawa State.
Dissatisfied with the restriction, Abhulimen & Co. instituted suit FCT/HC/CV/2194/2024 against Zenith Bank and the Nigeria Police Force.
In the judgment affirmed by the Court of Appeal, the FCT High Court held that the magistrate’s court lacked both territorial and substantive jurisdiction to issue an order freezing the account.
The trial judge, Justice S.U. Bature, questioned why the application had been taken before the magistrate’s court in Nasarawa State.
“The rationale behind seeking the said order at a magistrate court under the Nasarawa State jurisdiction cannot be understood,” the judge held.
The court further ruled that magistrate courts lacked jurisdiction to entertain applications seeking orders to freeze bank accounts.
It consequently faulted Zenith Bank for acting on the order despite its legal department being expected to recognise the jurisdictional defect.
The judge held that the bank “was wrong” to place a Post No Debit restriction on the claimant’s account based on an order issued by a court without the requisite jurisdiction.
The court also found Zenith Bank liable for negligence, saying the bank had a duty to inform its customer that the account had been frozen.
Justice Bature held that the bank’s failure to notify the claimant constituted a breach of its duty of care and due diligence.
The court subsequently ordered Zenith Bank to immediately lift the restriction placed on Abhulimen & Co.’s account.
It also directed the bank to publish an unreserved apology to the claimant in two national newspapers and on its website.
With the Court of Appeal’s latest decision, the key reliefs granted by the FCT High Court, including the N60 million general damages and N25 million costs, have been affirmed.
The judgment also reinforces the principle that banks cannot blindly rely on defective judicial orders to restrict customers’ access to their funds, particularly where the issuing court lacks the jurisdiction to make such orders.
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