Petgas Resources Limited V. Louis N. Mbanefo (2017)

LAWGLOBAL HUB Lead Judgment Report

CLARA BATA OGUNBIYI, J.S.C.

This is an appeal lodged against a judgment of the Lagos Division of the Court of Appeal, (henceforth, “the Court below”). The said Court, on 3rd May, 2006, dismissed the appeal of the Appellant herein (Defendant in the High Court), against a judgment of the High Court of Lagos State entered in favour of the Respondent (as Plaintiff therein) under Order II of the High Court of Lagos State (Civil Procedure) Rules, 1994. The said judgment of the High Court of Lagos State is in the sum of N1,375,000 (One Million, Three Hundred and Seventy-Five Thousand Naira) with interest thereon at the rate of 21% per annum from 13th October, 1995 until judgment and, thereafter, at the rate of 5% until the judgment debt is liquidated.

STATEMENT OF FACTS

By a specially endorsed Writ of Summons and a Statement of Claim dated and filed on 28th May, 1999, the Respondent herein claimed against the Appellant, the sum of #1,500,000 (One Million, Five Hundred Thousand Naira) as Mesne Profit for the Appellants occupation of the Respondents Property at 7A, Idejo Street,

Victoria Island, Lagos, for the period of 13th October, 1995, to 28th July 1998 at the rate of N500,000 (Five Hundred Thousand Naira) per annum. The Respondent also claimed interest on the said sum at the rate of 21% per annum from 13th October, 1995, to the date of judgment and, thereafter, at the rate of 5% per annum until final liquidation of the sum.

The Respondent’s case, as disclosed in his statement of claim, is founded on a Deed of sublease dated 10th February 1989. Under and by virtue of the said Deed of sublease, the Respondent granted a 3 (three) year lease of the property at 7A,Idejo Street, Victoria island, Lagos to the Appellant. Upon expiration of the term granted under the said lease, same was extended for a further period of 3 (three) years from 14th October, 1992, to 13th October 1995, with the appellant paying, in advance, rent in the aggregate sum of N1,500,000 (One Million, Five Hundred Thousand Naira) for the said 3 (three) years. The respondent’s case was that, upon expiry of the extended period of the lease, the Defendant/Appellant refused to accept either an increase in the rent, or to vacate the said property, and continued

to occupy same without paying rent until it vacated the property on 28th July, 1998. The respondent, accordingly, claimed Mesne Profit for that period.

The Appellant entered appearance on 7th June, 1999 where after the Respondent filed a summons for judgment dated 20th August 1999. The appellant, subsequently, filed a Statement of Defence dated 16th Septem6er, 1999 and an Affidavit showing cause on 12th October,1999, which said Affidavit, encapsulated its defence to the claim.

At the hearing of the summons for Judgment, the appellant contended that triable issues were raised both in its affidavit showing cause and the statement of Defence. In particular, it was the appellants contention to secure its immediate return of possession to the respondent so as to enable it give vacant possession of the premises forming the subject-matter of the suit to the respondent.

In a judgment delivered on 23rd December, 1999, the learned trial judge found no merit in the argument of the appellant and held that the respondent was entitled to judgment in the sum of N1,375,000 (One Million, Three Hundred and Seventy-Five Thousand Naira) plus

interest on the said sum at the rate of 21% from 13th October, 1995, until judgment and thereafter at 5% until the judgment debt is paid.

The Appellant challenged the judgment of the trial Court at the Court below on the grounds that it ought to have been allowed to defend the action on the merits and that there was no evidence before the Court to sustain the award of pre-judgment interest on the sum claimed, at the rate of 21% per annum from 30th October, 1999 (sic) to the date of judgment being 23rd December, 1999.

The Appellant on its own application, was, thereafter, granted leave by the Trial Court to Pay instalmentally, the Principal judgment sum of N1,375 (One Million, Three Hundred and Seventy-Five Thousand Naira) with interest thereon at the rate of 5% from the date of judgment to final liquidation, while it contested on appeal to the Court below, the award of pre-judgment interest.

The issue before the Court below was:-