Trade Bank Plc V. Spring Finance Ltd (2009)

LawGlobal-Hub Lead Judgment Report

JOHN INYANG OKORO, J.C.A.

The Respondent, as customer of the Appellant bank sometime in 1994 paid the sum of N7,000,000.00 (Seven Million Naira) vide Habib Nigeria Bank Ltd cheque No 005/80/001/080/94 into its current account No 105 – 372022401 -28 with the Appellant. The Appellant accepted the cheque though it bore the inscription A/C RIMS FINANCE LTD instead of A/C SPRINGE FINANCE LTD. The said cheque was cleared and the money deposited in the Respondent’s account. Thereafter, the Respondent made efforts to withdraw from the account but the Appellant failed to pay. This refusal to honour its cheques made the Respondent which was the plaintiff in the lower court to commence proceedings under the undefended list against the Appellant to recover the sum of N6,397,306.46 being the credit balance in its account as at July, 1994 after deducting their debit balance of N602,693.54.

The Appellant which was the defendant filed notice of intention to defend “under protest” supported by a six paragraph Affidavit, wherein it averred in paragraph 4 (c) – (o) as follows:-

“(c) That the 2nd plaintiff not being the customer connected with this transaction cannot sue the bank thereon

(d) That the 1st plaintiff is a liquidated finance company whose license has long been withdrawn by the Central Bank of Nigeria Limited.

(e) That as a result of the averments in sub paragraph (d) above, the 1st Plaintiff too cannot file this action

(f) That it is not correct that the 1st Plaintiff is entitled to the cash on Habib Nigeria Bank Ltd’s draft No 005/80/001/080/94.

(g) That the said draft Exhibit B to Plaintiff’s affidavit is not in favour of the plaintiff.

(h) That the N7million paid by the 1st Plaintiff into its account with the Defendant’s Kaduna branch sometime in 1994 was by a United Bank for Africa Plc draft which was cleared and the funds released to the 1st Plaintiff.

(i) That a firm of solicitors Ado Ibrahim, Oyewumi and Company wrote to the defendant on this same issue on which this suit is filed in September, 1994. A copy of the letter is attached herewith as Exhibit A.

(j) That the Defendant instructed its Solicitors, Lanke Odogiyou chambers, who reacted to said letter giving detail explanations of the transactions. Attached herewith as Exhibit B is a photocopy of the said letter.

(k) That settled the matter since 1994.

(l) That suddenly recently the Plaintiff resumed its request for the money.

(m) That he was not the Kaduna Manager in 1994 but the Plaintiff s file with the Defendant’s Kaduna Branch bears out the above facts.