African Continental Bank Plc V. Benedict O. Nbisike (1995)

LawGlobal-Hub Lead Judgment Report

EDOZIE, J.C.A.

This appeal relates to unlawful dismissal from employment. In suit No.HOR/4/86, in the Orlu High Court, the respondent as plaintiff sued the appellant bank, the defendant in the court below. The claim was for a total sum of N500,000.00 as general and special damages for wrongful dismissal from employment. Pleadings were ordered, duly filed and exchanged and with leave subsequently amended with the pleadings terminating in a further amended statement of claim and a further amended statement of defence to be referred to simply as statement of claim and statement of defence respectively. From the pleadings and evidence of witnesses, two each for the parties, the facts of the case may be summarised as hereunder:-

On 15/5/78, the respondent was offered an employment as a clerk by the appellant bank. He accepted the offer and assumed duty on 1/7/78. The initial salary was N1,162 per annum which by annual increment rose to N2,282 per annum in 1985. The respondent worked at the Orlu branch of the appellant bank. There, he worked in several departments and in different capacities as a clerk, including calculation of interests payable with various customers’ account with the appellant bank. Apparently, there was no special agreement with the appellant bank setting out the terms and conditions of his employment but the respondent relied on the manual titled “Recognition and Procedural Agreement and Main Collective Agreement Between The Nigerian Employers’ Association of Banks, Insurance and Allied Institutions And the National Union of Banks, Insurance And Financial Institutions Employees.” This manual was admitted in evidence as Exhibit ‘C’.

In 1983 the respondent received an oral warning from the Area Inspector of the appellant bank who inspected the books of the appellant bank in that year and discovered that a group of members of the staff of the appellant bank among whom was the respondent ganged up and awarded themselves excess of interests in their various savings and current accounts with the appellant bank. The inspection related to 1982 and 1983 records. Another inspection of the books of the appellant’s bank was conducted by the bank’s Inspector in 1985 and similar discoveries were made and a report sent to the appellant’s head office in Lagos.

Before then, the respondent had on 12/11/84 applied for a study leave to study accountancy in the University of Nigeria, Nsukka. The study leave was to last for four years. His application was addressed to the Chief Personnel Officer of the appellant Head Office, Lagos through the Manager of the appellant Orlu branch. By that date, the respondent was on annual leave which was to end by the end of December, 1984. He did not receive any reply to his application for study leave before he left for the University of Nigeria, Nsukka in that same November, 1984 for a 4-year course in accountancy. The respondent alleged that the Branch Manager of the appellant Bank at Orlu permitted him to proceed to Nsukka assuring him that his application for study leave would be in the affirmative. No such reply was received by the respondent before he left for Nsukka. By a letter dated 23/10/85, admitted in evidence as Exhibit “A”, the respondent was summarily dismissed from employment by the appellant bank for gross misconduct with loss of benefits. It was the respondent’s case that he was not told the cause of his dismissal nor was he given any opportunity to clear himself. In consequence, the respondent initiated the proceedings leading to this appeal. The particulars of special damages claimed by him consist of the following:-

1. Gratuity for 8 years service calculated

at the rate of 40% of terminal salary N8,036.40

2. Staff provident fund and entitlements 624.00
3. Basic salary for 22 years N72,204.00
4. End of Service Gratuity N208,026.00
5. Basic transport allowance of N20

per month for 22 years 5,280.00

6. Basic housing allowance of N30.00

per month for 22 years 7,920.00

7. Luncheon vouchers of N45.00 per month

for 22 years 11,880.00

8. Basic leave allowance of N130.00 for 22 years 3,740.00
9. 1983-1984 leave commuted to cash but unpaid 1,167.42

General damages 181,121.46

Total N500,000.00

The appellant bank, on the other hand, denied liability for the claim contending that the dismissal of the respondent was in order and not wrongful. It was the case of the appellant that following the 1983 inspector’s report, the respondent was cautioned and a report made to the Head office and when in 1985 another Inspector’s report inculpated the respondent over the question of crediting his account with excess interest the appellant bank dismissed him. It was further the appellant’s case that the respondent’s application for study leave was not approved and that the appellant was not bound to give respondent a hearing before dismissal because his case was one of misconduct amounting to fraud.

After due trial, the learned trial Judge Oyudo J, dismissed the respondent’s case for wrongful dismissal but converted the dismissal to termination or retirement and proceeded to award the respondent the following N8,361.93 as gratuity for 7 years; N624 staff Provident Fund pension and N733.92 – 1983/1984 leave allowances. Subject to that the respondents claim was dismissed with N200 costs to the appellant. Aggrieved by the awards, the appellant has appealed to this court. The appeal is predicated on one original and two additional grounds of appeal which without their particulars read as follows:-

Ground 1: Error in Law