International Merchant Bank Plc V. Comrade Cycle Co. Ltd. & Anor (1998)

LawGlobal-Hub Lead Judgment Report

ABDULLAHI, J.C.A.

This is an interlocutory appeal against the decision of Kaduna State High Court sitting at Zaria dated 15/7/92.

The facts briefly are that, the appellant as financiers, granted facilities to the 1st respondent and the 2nd respondent guaranteed the repayment. Somewhere along the line, dispute arose. The appellant then commenced an action on the undefended list claiming the sum of N3,139,558.47 being the money due and owing to it from the respondents.

The respondents filed a notice of intention to defend. The trial court transferred the case to the general cause list.

The respondents filed a joint statement of defence in which they admitted owing the appellant the sum of N2,415, 133.96.

The appellant then filed an application for judgment upon the sum admitted. The respondents filed a counter-affidavit opposing the application for judgment, but at the same time argued that if the court was inclined to enter judgment for the amount said to be admitted, then, that amount of N2,415,133.96 would represent their entire liability to the appellant.

The trial court heard arguments on the application and at the end of the day refused the application for judgment.

The appellant was dissatisfied with the decision of the trial court and has appealed against it to this court.

Parties filed and exchanged briefs of argument.

In his brief of argument, the learned counsel for appellant formulated one issue for the determination of the appeal. It reads thus:-

“Whether there has been an admission of the appellant’s claim to the tune of N2, 415,133.96 and whether judgment ought to be entered for the sum admitted.”

Learned counsel for appellant submitted that there was a clear and unambiguous admission of indebtedness by the respondents to the tune of N2,415,133.96 and judgment ought to have been entered against them in favour of the appellant.

Learned counsel referred to paragraph 5 of the joint statement of defence pleaded by the respondents. It reads thus:

“The defendants deny liability of the amount of N3,139,558.47 being claimed by the plaintiff but aver that it is indebted to the plaintiff to the tune of N2,415,133.96 and not the amount stated by the plaintiff.”