African Petroleum Ltd. V. J. K. Owodunni (1991)

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NNAEMEKA-AGU, J.S.C. 

By a writ of summons filed on 14th of November, 1983, the plaintiff claimed from the defendant as follows:

“(a) Recovery of possession of the premises known and situate at 1, Ilabere Avenue, Ikoyi Lagos State which he was put into possession by the plaintiff as service tenant at the time of his employment with the plaintiff: and

(b) An injunction to restrain the defendant from continuing to occupy the said premises.

The plaintiff claims possession and mesne profit at the rate of N13,500.00 per annum from the 31st of December, 1980 until possession is given up.”

According to the pleading in the further amended statement of claim dated 19th February 1986, the defendant, a chartered accountant was at all material time a director and employee of the plaintiff, a limited liability company involved in trade, production, distribution and sale of petroleum and natural gas products within and outside Nigeria. The plaintiff allowed the defendant to occupy the house and premises being and situated at No.1 Ilabere Avenue, lkoyi, Lagos “for as long as he held his appointment as Department Manager (If Executive Senior Official and Director with the Plaintiff/Company and on the terms and conditions contained in the letter dated 23rd May, 1973 from the then Managing Director, R.B, Lyaskey to the Defendant.”

The defendant had to pay rent at the rate of N1,000.00 per annum or 15% of salary, whichever was less. This sum was later reduced to N800.00 and then to N400.00 per annum, as per Exhibit C dated 1st June, 1976. The purpose of the allocation of the premises was to enable him do his work for the plaintiff. The premises was situated at a low density and expensive area of Ikoyi. On the 10th of October, 1976, that is about one year before the determination of the defendant’s employment with the plaintiff, both parties went before the Rent Tribunal which according to the proceedings, tendered as Exhibit “F”, fixed the appropriate rent of the premises at NI3,500.00 per annum. There was no appeal against the fixture. The Tribunal further allowed the plaintiff two more years on the premises. The defendant is still holding over the premises, inspite of several notices to quit and of intention to go to court, including Exhibits G, L, M, O, P1 and P3: some were cancelled leaving Exhibits Land M the validity and effectiveness of which I shall consider later in this judgment. The notice to quit, Exhibit “L” was issued in 1983.

The plaintiff’s claim which was initially N 13,000.00 per annum was also amended by the statement of claim as follows:

“Whereof the Plaintiff claims possession and mesne profits or in the alternative for use and occupation at the rate of:-

1. 1981 – N60,000.00 per annum
2. 1982 – N65,000.00 ” ”
3. 1983 – N70,000.00 ” ”
4. 1984 – N65,000.00 ” ”
5. 1985 – N65,000.00 ” ”
6. 1986 – N65,000.00 ” ”

and at the rate of N65,000.00 per annum until possession is given up.

GROUNDS FOR POSSESSION

1. Effluxion of time
2. Personal Use – required urgently for the accommodation of its members of staff.”

After hearing, Famakinwa, J., in his judgment, held as follows:

“From the stand points of clarity in my judgment, it is clear that I did not accept or find as a fact that the tenancy between the parties is a yearly tenancy. It is my judgment in the substantive suit that the Defendant is a monthly tenant. Consequently, in order to determine his tenancy, the Defendant ought to be served with a month notice to quit. If the Defendant refused to give up possession, he should be given 7 days notice of intention to recover possession. Still if the Defendant is still holding over in the premises, he become a statutory tenant. In order to eject him from the premises the plaintiffs should commence an action to recover possession from him. To this point, the tenancy of the Defendant is not properly determined. He was served with 7 days notice to quit.

In the alternative, he held: