BANKING: BANKER/CUSTOMER RELATIONSHIP; DUTY TO HONOUR CUSTOMER'S CHEQUE; WHEN IS A BANK UNDER OBLIGATION TO HONOUR A CUSTOMER'S CHEQUE?

BIYI CONCEPTS VENTURES LIMITED & ANOR v. POLARIS BANK LIMITED.

HIGH COURT, F.C.T, ABUJA (ABUJA DIVISION)

(PETER O. AFFEN, J)

Background Facts

Biyi Concepts Ventures Limited & Anor (Claimants) by a writ of summons and an amended statement of claim alleged that Polaris Bank Limited (Defendant) was intentionally negligent in failing and/or refusing to honour and give value to a cheque drawn by the 1st Claimant - in favour of the 2nd Claimant - Oluwabiyi Oluwakayode, who is also the 1st Claimant's Managing Director/CEO. The Claimants for this reason took out an action, claiming against the Defendant the following reliefs: (i) An Order of the Court that the Defendant's refusal to honour the First Claimant's Skye Bank Plc (now Polaris Bank Limited) for the sum of N1,000,000.00 (One Million Naira) issued in favour of the 2nd Defendant amounts to a breach of contract and liable in damages.