Access Bank V. Nsitf (2022)

LAWGLOBAL HUB Lead Judgment Report

IBRAHIM MOHAMMED MUSA SAULAWA, J.S.C.

The instant appeal is against the judgment of the Court of Appeal, Abuja Judicial Division, delivered on February 24th, 2015 in appeal No. CA/A/673/2013. By the said judgment, the Court below granted the Respondent’s appeal against the Appellant.

BACKGROUND FACTS

The Appellant happens to be a financial institution duly incorporated under the Companies and Allied Matters Act, CAP. C.20 Laws of the Federation of Nigeria, 2004.

Contrariwise, the Respondent is a parastatal of the Federal Government of Nigeria duly established pursuant to the provisions of the Nigeria Social Insurance Trust Fund Act CAP. N88 Laws of the Federation of Nigeria. The Respondent as a Social Trust Fund, duly established by the Federal Government, has had a cause to be engaged in a banking business with the Appellant.

On 19/05/2008, the Respondent applied vide a letter to roll over various sums of money in the Appellant’s Bank for a fixed terms of 31 days. The whole essence of the transactions between the parties was to gain some interests.

On 18/8/2008, the Appellant made some payments to the Respondent at annual interest rates of 11% and 2% penal rate, as against the 2% daily interest rate allegedly agreed upon by the parties.

On 13/8/2010, the Respondent introduced the Accounting Firm of D.E. Ogona & Co. to the Appellant, thereby demanding further interest payments from the Appellant. The Appellant, however, denied any lability, claiming that it had fully paid those sums of money to the Respondent.

Thus, on 21/6/2011, the Respondent caused a writ of summons to be instituted at the FCT High Court by CAC Agidi Esq. of Eric Apia & Co. By virtue of the endorsement on the face of the writ of summons and statement of claim (filed along with the writ), the Respondent claimed against the Appellant the following reliefs:

a. N16,639.23 being the amount of the 4 days penalty for default plus the regular interest on the placement of N205,581,158.11. Less and N294,803.83 already paid as interest and penalty.

b. The sum of N62,582,512.11 being the amount for the 5 days penalty for default plus the regular interest on the placement of N616,559,877.02.

c. The sum of N40,225,913.48 being 21% interest on both placement from the due dates to 20th August 2010.

d. 21% interest per annum on the total sum from 21st day of August 2010 till judgment is delivered.

e. 10% interest from the date judgment is given until final liquidation of the debt.