Augustine Chigozie Uba V. Union Bank of Nigeria Plc (1994)

LawGlobal-Hub Lead Judgment Report

RABIU DANLAMI MUHAMMAD, J.C.A. 

Augustine Chigozie Uba the appellant herein was the plaintiff at the lower court. He was a customer of Union Bank of Nigeria PLC, the respondent herein. He operated two accounts with the respondent at its Gindiri Branch. One account was a Current Account while the other was a Loan Account. On 9th day of July, 1991, the appellant bought various motor spare parts from one C.G. Lot for N372, 500.00. On the same day he issued the said C.G. Lot with a cheque for N50, 000.00 drawn on the respondent’s Gindiri Branch, as deposit for the supply of the spare parts. When C.G. Lot presented the cheque for encashment, it was not honoured and was returned marked “Drawer’s Confirmation required.” C.G. Lot was annoyed. He went to the appellant and told the appellant off in the presence of so many people. C.G. Lot also sold the spare parts to another person. The appellant was surprised that his cheque was dishonoured because he had made a total deposit of N 167, 346.00 and had only withdrawn N 113, 100.00 leaving a balance of N54, 346.00. The appellant then went and saw the Branch Manager, who asked for time to sort out the account. When nothing was done by the Branch Manager, the appellant instructed his Solicitors to write to the Bank which was done. When the respondent still refused to pay the cheque, he sued the Bank at the Plateau State High Court, Pankshin Judicial Division Claiming:-

“Whereof plaintiff claims the sum of N500, 000.00 (Five Hundred Thousand Naira Only) as special and general damages for all the loss incurred by the plaintiff as a result of the dishonour of his cheque aforesaid by the defendant.”

Pleadings were ordered, filed and exchanged. In its statement of defence, the Bank denied liability and counter-claimed. The bank averred that as at 9/7/91 when the appellant’s cheque was presented his current account was in debit. The Bank then counter-claimed for N907.42.

At the hearing of the suit, the appellant testified and also called one other witness. Only one witness testified on behalf of the respondent. In a reserved judgment the trial Judge in dismissing the claim said:-

“I find that the defendant has successfully proved that the plaintiff had no enough fund at the time of the presentation of the cheque to the Bank on 9/7/91. He cannot therefore blame the defendant for dishonouring his cheque moreso when the dishonour was no outright … The plaintiff was in deficit to the tune of N755.68 Kobo at the time of presenting his cheque on 9/7/91.”

With regards to the contention that the Bank did not plead that it used the sum of N50, 000.00 to liquidate the loan, the trial judge held:-

“In my opinion, I find that this is implied in paragraph 9 of the pleadings of the defendant. The loan account is also pleaded in paragraph 2 and 3 of the counter-claim which was not challenged by plaintiff’s pleadings.”

On the issue of a Banker combining two accounts without the express permission of the customer, the trial judge stated:-

“…It is the law and indeed Banking practice that unless precluded by agreement express or implied from the course of business, the banker is entitled to combine two different accounts kept by the customer in his own right, even though at different branches of the same Bank, and to treat the balance, if any, as the only amount really standing to his credit… In the case in hand, I see nothing wrong in the defendant opening a Loan Account separate from plaintiff’91s ordinary Current Account unless there was an express agreement that the two accounts should be operated distinct and separate.”

The learned trial Judge then concluded:-

“On the whole I find that the defendant did not wrongfully and negligently dishonour the plaintiff’s cheque since he had no sufficient fund covering the sum of N50, 000.00 in his account. I therefore find that he is not entitled to the damages claimed.”

The trial Judge also found the respondent’s counter-claim as proved and entered judgment against the appellant in the sum of N907.42 at 26.5% interest from 17/7/92.

The appellant was dissatisfied with this decision he therefore appealed to this court. He filed nine grounds of appeal. Without their particulars, the grounds of appeal read:-