Legal Showdown Unfolds Ad  Court Freezes Kano Govt Accounts In N30bn Compensation Clash

In a striking legal development, the Federal High Court in Abuja has taken decisive action, issuing a garnishee order to freeze 24 bank accounts linked to the Kano State Government.

 This bold move is a response to a lawsuit initiated by the Incorporated Trustees of Masalachi Eid Shop Owners and Traders Association, who are seeking a hefty N30 billion in compensation for what they allege was the illegal and unjust demolition of their shops.

Presiding over the case, Justice I. E. Ekwo delivered a pivotal ruling on November 28, 2023, affirming the attachment of funds totaling N30 billion. 

The Certified True Copy (CTC) of the ruling, signed by Registrar Chioma Chijioke, outlines the court’s intention to satisfy the judgment favoring the shop owners, stemming from the state’s alleged illegal demolition in June 2023.

Justice Ekwo’s court order explicitly targets the funds, both present and future, of entities such as the Kano State Government, Kano State Urban Planning and Development Authority (KNUPDA), and the Attorney General of Kano State, amounting to N30 billion in satisfaction of the judgment.

In a further twist to the legal saga, the court has mandated the garnishees to appear and present any cause against the order Nisi being made absolute. 

The judge has also set a specific timeline, requiring judgment creditors to serve the defendants and garnishees at least 14 days before the upcoming hearing scheduled for January 18, 2024.

This recent ruling follows a prior judgment by the Federal High Court in Kano, where the shop owners were awarded the substantial sum of N30 billion as compensation for the earlier demolition of their shops. 

The impact of this legal clash reverberates across 24 banks, where the frozen accounts are distributed, setting the stage for a complex legal battle with significant financial implications.

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