Adeoye Magbagbeola V. Temitope Sanni (2001)

LawGlobal-Hub Lead Judgment Report

ADEREMI, J.C.A. 

The respondent who was the claimant in the court below, (High Court Lagos, Lagos Division) Coram Rhodes – Vivour, J. had brought an application pursuant to section 7 (2) (b) of the Arbitration and Conciliation Act, Cap. 19, Laws of the Federation of Nigeria, 1990 for the appointment of a sole arbitrator pursuant to clause 17 of the Partnership Agreement dated 7th November, 1999, which is in the following terms:

“All disputes between the partners in relation to any matter whatsoever touching the partnership affairs or the construction of this agreement whether before or after the determination of the partnership shall be referred to an arbitrator.”

The appellant who was the respondent in that court filed a notice of preliminary objection on 22nd May, 2000 challenging the jurisdiction of the court below to entertain the suit on the ground, according to him, that the dispute concerned the running of a company incorporated under CAMA 1990 and that the court lacked the jurisdiction to entertain matters touching the running and sharing of profits of such a company. On the 14th of July, 2000 the learned trial Judge, in a considered ruling dismissed the preliminary objection upholding the contention of the claimant/respondent that the court has jurisdiction to hear and determine the claim. In the course of his ruling the learned trial Judge held:

“In this preliminary objection arguments of counsel call for the examination of the provisions of sections 251(1)(e) and 272(1) of the Constitution of the Federal Republic of Nigeria, 1999.

In the substantive suit the applicant seeks by way of originating summons an order of this court that some fit and proper person be appointed to act as Sole Arbitrator pursuant to section 17 of the agreement between the parties dated 7/11/99″…

Now section 251 (e) of the Constitution states that:-

‘Notwithstanding, anything to the contrary contained in this Constitution and in addition to such other jurisdiction as may be conferred upon it by an Act of the National Assembly, the Federal High Court shall have and exercise jurisdiction to the exclusion of any other court in civil causes or matters arising from the operation of the Companies and Allied Matters Act or any other enactment replacing that Act or regulating the operation of companies incorporated under the Companies and Allied Matters Act.”

While section 272(1) supra states that:-

“Subject to the provisions of section 251 and other provisions of the Constitution the High Court of a State shall have jurisdiction to hear and determine any civil proceedings in which the existence or extent of a legal right, power, duty, liability, privilege, interest, obligation or claim is in issue…”

there is nothing in the above or any legislation which says that the Federal High Court has exclusive jurisdiction to appoint an Arbitrator. The substantive claim seeks the appointment of Arbitrator and a State High Court or Federal High Court has jurisdiction to appoint an Arbitrator. See Arbitration and Conciliation Act, Cap. 19, Laws of the Federation of Nigeria, 1990, particularly its interpretation section. Section 857 with reference to the appointment of an Arbitrator “court” means the High Court of a State or the Federal High Court while “Judge” means Judge of the High Court of a State or a Judge of the Federal High Court.

In the light of the above this court has jurisdiction to hear and determine the applicant’s claim. Accordingly, the preliminary objection is hereby dismissed.

Aggrieved, the respondent/appellant filed an appeal, the notice of which carries two grounds. Distilled from the two grounds are two issues for determination. Set out in the appellant’s brief they are in the following terms:

(1) Whether from the facts of this case, particularly the partnership agreement dated 7th November, 1999 there is nothing in Section 251 (e) and Section 272 (1) of the Constitution of the Federal Republic of Nigeria 1999 to oust the jurisdiction of the Lagos High Court in this suit.