**Court orders Standard Chartered Bank to transfer $6.21 million to Norden by November 12 as Polaris Bank fails to file a defence in maritime debt dispute**
A United States federal court has ordered Polaris Bank Limited to pay $6,214,196.08 to Danish shipping company Norden after freezing the Nigerian bank’s funds held by Standard Chartered Bank in New York over a long-running maritime dispute.
The order, issued on November 5, 2026, by the United States District Court for the Southern District of New York, directed Standard Chartered Bank, New York, to release and transfer the money to an account designated by Norden on or before November 12, 2026.
The development followed months of legal proceedings in which Polaris Bank, despite obtaining several extensions to respond to the lawsuit, failed to file an answer or formally defend itself against the claims before the court.
Court records reviewed by TrackNews Online show that the dispute originated from a 2021 shipping transaction involving the transportation of 27,000 metric tonnes of gypsum from Safi, Morocco, to Lagos, Nigeria.
The cargo was transported aboard a vessel, Lady Demet, for exporter Gypse Expo. Quattro Marine and Petrochemical Nigeria Limited was the buyer, purchasing the shipment for onward sale to Lafarge Africa Plc, while Polaris Bank financed the transaction through a letter of credit.
Under the voyage charter agreement dated June 28, 2021, freight was fixed at $39.95 per metric tonne, while demurrage charges were set at $35,000 for every day of delay.
The disagreement over outstanding shipping payments eventually resulted in arbitration proceedings in London.
On or about May 6, 2022, Norden, the Danish disponent owner of the vessel, commenced arbitration against Polaris Bank under the London Maritime Arbitrators Association.
On March 30, 2026, the arbitral tribunal issued a final partial award directing Polaris Bank to pay $1,052,692.50 in outstanding freight, together with interest at five per cent annually, compounded quarterly from September 25, 2021, until payment.
According to the court filings, Polaris Bank had not paid the award when Norden commenced proceedings in the United States.
Beyond the original freight award, the arbitration also involved additional claims amounting to $4,235,377.23, covering demurrage at the loading and discharge ports, additional freight, war-risk charges, kidnap-related expenses and loss-of-hire charges, after deducting a part payment of $400,000.
### US COURT FREEZES POLARIS BANK’S DOLLARS
Unable to recover the outstanding award, Norden turned to the United States, where Polaris Bank maintained funds through correspondent banking relationships.
On June 22, 2026, Norden instituted proceedings in the Southern District of New York, seeking the attachment and garnishment of Polaris Bank’s funds held by Citibank, Standard Chartered Bank and United Bank for Africa in New York.
The shipping company sought security of at least $1,052,692.50, with claims extending to $5,288,069.73, alongside additional interest, costs and legal fees.
On June 25, 2026, the court granted an order of maritime attachment and garnishment against Polaris Bank.
The order authorised the United States Marshal to attach the bank’s property and credits held by Standard Chartered Bank, New York, up to $6,001,000, and up to $6,400,000 when interest, costs and fees were included.
The court further directed that the attached funds be held and not released without its authorisation.
The attachment also covered other banks within the district holding Polaris Bank’s funds as agents or intermediaries in money transfers.
### POLARIS BANK FAILED TO FILE AN ANSWER
One of the most significant aspects of the proceedings was Polaris Bank’s failure to file an answer to the lawsuit.
Court records indicate that the bank, represented by Dentons in the United States, repeatedly obtained extensions of time to respond.
The extensions were granted in July, August, September and October 2026, with the final deadline moved to November 11, 2026.
However, no answer from Polaris Bank was filed in the court record.
The only answer identified in the proceedings was submitted by Standard Chartered Bank, New York, in its capacity as garnishee on August 7, 2026.
The failure to formally respond left the attachment proceedings running while Polaris Bank’s funds remained frozen pending further court orders.
### SETTLEMENT PRODUCES $6.21M PAYMENT ORDER
The legal proceedings took a new turn in October 2026 when the court was informed that the parties had reached an agreement in principle to settle all outstanding claims.
On October 27, 2026, the court dismissed and discontinued the action, allowing the parties 30 days to reopen the case if the settlement was not completed.
However, on October 28, the parties jointly applied to reopen the proceedings to facilitate the implementation of the settlement, payment of the attached funds and eventual lifting of the garnishment orders.
The court granted the request.
In its November 5 order, the court directed Standard Chartered Bank, New York, to transfer exactly $6,214,196.08 to Norden’s designated account on or before November 12, 2026.
Standard Chartered was also required to confirm receipt of the payment.
Upon completion of the transfer, all attachments over Polaris Bank’s funds and property held by Standard Chartered and other garnishee banks were to be lifted and vacated.
The court further discharged Standard Chartered Bank from its responsibilities as garnishee.
The case was subsequently discontinued and dismissed with prejudice, with each party bearing its own legal costs.
However, Norden retained the right to attach Polaris Bank’s funds again if the bank failed to honour the settlement agreement.
### QUESTIONS OVER BANKING GOVERNANCE AND INTERNATIONAL REPUTATION
The development raises questions about the financial and reputational implications of Polaris Bank’s handling of the dispute, particularly its failure to file a formal defence despite obtaining several extensions from the American court.
Although the underlying shipping transaction dates back to 2021, before the current leadership period at Polaris Bank, the London arbitration award, New York litigation, attachment of funds and eventual settlement all occurred in 2026.
The difference between the original arbitral award of $1.05 million and the eventual $6.21 million settlement also underscores the substantial financial exposure arising from the prolonged dispute.
The November 5 order further provided that the court would retain jurisdiction for 30 days to enforce the settlement, with any party entitled to seek the reopening of the case if the payment was not received within the stipulated period.
For Polaris Bank and its Managing Director, Kayode Lawal, the case presents serious questions about the bank’s management of international legal disputes, exposure to foreign-court enforcement proceedings and the protection of its financial interests abroad.
TrackNews Online notes that the court-approved settlement does not, by itself, establish criminal wrongdoing by the bank or its management. However, the circumstances surrounding the frozen funds, the unpaid arbitration award and the failure to file an answer warrant public scrutiny.
**TRACKNEWS ONLINE — FOLLOWING THE MONEY, DEMANDING ACCOUNTABILITY.**
