Ecobank Nigeria Limited V. Anchorage Leisures Limited & Ors (2018)

LAWGLOBAL HUB Lead Judgment Report

MARY UKAEGO PETER-ODILI, J.S.C.

This is an appeal against the judgment of the Court of Appeal, Lagos Division, or Court below or Lower Court, Coram: Sidi Dauda Bage, JCA (as he then was), Samuel Chukwudumebi Oseji and Abimbola O. Obaseki – Adejumo JJCA delivered on the 30th day of March, 2016 where the Lower Court affirmed the ruling of the trial Court delivered on 11th day of November, 2015 per M. B. Idris J.

It is in dissatisfaction with the decision of the Court below that the appellant has come before the Supreme Court to ventilate its grievances.

FACTS BRIEFLY STATED:

Respondents’ grouse in presenting the suit in this appeal is that Appellant herein allegedly failed and/or neglected to adhere to an “in-principle” agreement reached between a certain Honeywell Group Limited (not a party in the suit of this appeal) and the appellant herein as shown in the letters dated 22nd July, 2013. (compiled at pages 31 and 32 of the record of appeal, Vol.1).

As shown by the letters, respondents herein were indebted to the appellant bank over sums in excess of N5.5 Billion

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following which Honeywell Group Limited proposed to the appellant bank that the latter grant to it concessions on the total indebtedness. Appellant indeed, gave the concession as sought by Honeywell Group Limited that out of the entire N5.5 Billion outstanding, the negotiating Honeywell Group Limited pay a concessionary sum of N3.5 Billion on terms and conditions mutually agreed at the meeting of 22nd July, 2013.

Further agreed at the 22nd July, 2013 meeting was that the negotiating third party, Honeywell Group Limited pay an immediate sum of N500,000,000.00 whilst the remainder N3 Billion is paid in bullet point form and before the departure of the then visiting CBN examiners at the appellants bank, in August, 2013. It is necessary to add that the then visiting CBN examiners were examining the appellants book on its exposures chief amongst which was the obligations subject of the 22nd July, 2013 “in-principle” agreement.

In a letter dated 22nd July, 2013 the negotiating third party, Honeywell Group Limited proposed fresh terms so as to stagger the repayment of the N3 Billion balance contrary to the agreement earlier reached. The instructive

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paragraph in the letter by Honeywell Group Limited dated 22nd July, 2013 and compiled at page 31 of the record of appeal Vol.1 reads thus:-

“As part of the verbal agreement reached at the meeting, we shall immediately pay the sum of N500 Million towards the facility. We propose that the balance of N3 Billion be paid in three equal half yearly instalments.” (Emphasis supplied).

It is clear that the payment of N500 Million was as agreed in the meeting of 22nd July, 2013 while the proposed staggered repayments constitutes a fresh proposal outside the agreement of 22nd July, 2013.