Oyedepo, Winners Chapel sued over alleged unpaid contract
The registered trustees of the Living Faith Church popularly known as Winners Chapel will appear before Ogun State High Court sitting in Ota due to a suit filed by the Managing Director, Paudemic International Limited, Abraham Olorunda, over an alleged N29.532 million unpaid contract sum awarded by the church.
It was stated that the defendants in the case are the founder of the church, Bishop David Oyedepo, and Covenant Microfinance Bank Limited for breaching a contract agreement.
According to Leadership, the claimants in suit number HCT/429/2020 demanded an interest of 221 percent per annum from October 2019 to the day judgment is delivered and, after that, 10 percent per annum from the judgment date until the final liquidation of the judgment sum.
In their statement of claim, the company alleged that they were awarded a contract for the construction of a cylindrical steel tank at Covenant University, Ota through a letter dated October 20, 2008 in the sum of N14.108 million.
While explaining the contract terms, Olorunda argued that they approached Covenant Microfinance Bank Limited, one of the conglomerates of the defendants, for an advanced payment guarantee of 75 percent of the contract sum, which was N10.581 million for the execution of the contract.
He stressed that the contract was at the completion stage when the defendants issued a cheque of N10.581 million, but effort to get the cheque paid proved abortive as it was returned unpaid upon presentation three consecutive times.
The claimants said, however, they refused to pay back the Advance Payment Guarantee due to the unpaid cheque, the bank converted the same to a loan and started charging interest rate.
The company recalled that he issued a letter on February 11, 2019, to the agent of the defendants to complain about the returned cheque, and the defendants refused to deal with the matter.