Chief Peter Amadi Nwankwo & Anor. V. Ecumenical Development Co-operative Society (Edcs) U.A. (2001)

LawGlobal-Hub Lead Judgment Report

FABIYI, J.C.A.

This is an appeal against the ruling handed out by Agbo, J., sitting at the High Court of Justice, Enugu on 30th July, 1997.

The learned trial Judge entered judgment in favour of the plaintiff who is the respondent herein against the defendants who are the appellants in this appeal in the sum of US $500,000 (Five hundred thousand US Dollars) plus interest at the rate of 9% per annum from 22-1-91 to 30-7-97 as well as 5% per annum interest until the judgment debt is liquidated. Cost was assessed at N3,000 in favour of the plaintiff/respondent by the learned trial Judge. It should be noted here that the judgment was entered vide the dictates of the applicable rules relating to the undefended list procedure as shall be depicted anon.

It is desirable to state the back-ground facts leading to this appeal. The claim of the plaintiff/respondent, as contained on page 2 of the record of proceedings, reads thus:

“PARTICULARS OF CLAIMS:

The plaintiff claims against the defendants jointly and severally as follows:-

(a) The Sum of $500,000 (Five hundred thousand US Dollars) being the principal sum of the loan due from the first and second defendants to the plaintiff under a personal guarantee executed by the defendants to secure a loan granted by the plaintiff to Amike Ezzamgbo Community Farms Limited under a loan agreement dated 18th January, 1990 payment of which sum the first and second defendants have failed, refused and/or neglected to pay despite repeated demands.

(b) Interest on the principal sum of $500,000 (Five hundred thousand US Dollars) at the agreed rate of 9% (nine percent) per annum from January 22nd, 1991 till date of judgment.

(c) Interest thereafter at the rate of 6% (six percent) per annum from the date of judgment until the entire judgment sum is finally liquidated.”

The respondent placed reliance on a contract of guarantee executed by the appellants in its favour. It is part of Exhibit A as can be gleaned from pages 23 to 28 of the record of proceedings. The appellants guaranteed a loan transaction between the respondent and Amike Ezzamgbo Community Farms Nigeria Limited. The 1st appellant is the Chief Executive of the Company. Based on the guarantee agreement, the respondent released a loan of US $500,000 to which was attached interest and fees to Amike Ezzamgbo Farms Nigeria Limited. When the loan was due for repayment, the company defaulted and failed to pay. The respondent made demands on the appellants to pay pursuant to the guarantee agreement but they refused and/or failed to pay. The respondent believed that the appellants had no defence to their action filed and placed on the undefended list.

The appellants filed a notice of intention to defend the suit. In their affidavit, they tried to garner some points which they felt would dissuade the learned trial Judge to transfer the suit to the general cause list, it was stated that the contract of guarantee failed because the respondent refused to disburse the stated loan. They contended that the trial Judge could not make any award in foreign currency. They signified their intention to raise a defence of limitation of time. As well, they maintained that the trial court was not competent to hear the suit as the site of the farm (the beneficiary of the loan) is in Ebonyi State.

The learned trial Judge was duly addressed by counsels on both sides on all relevant points as properly raised on behalf of the parties in his well reasoned and considered judgment, he found that the appellants failed to make out any triable issue that could warrant a transfer of the suit to the general cause list. He then entered judgment in favour of the respondent herein as stated above.

The appellants felt dissatisfied with the judgment and ex debito justitiae, filed their notice of appeal dated 12-3-98. Three grounds of appeal accompanied same. From the three grounds of appeal, the appellants formulated three issues for determination, they read as follows:

“1. Whether the High Court of Enugu State is competent to hear and determine the case as the subject matter of the case is land in Ebonyi State?