Units Environmental Sciences Limited v. Revenue Mobilization, Allocation and Fiscal Commission (2022)

LAWGLOBAL HUB Lead Judgment Report – SUPREME COURT

AGIM, J.S.C. (Delivering the Leading Judgment)

The partiesherein entered into a written agreement on 27-12-2001, in whichit was agreed that the appellant provide the particular consultancyservices specified therein for the respondent’s Staff HousingDevelopment at Mabushi Abuja and that the respondent shall paythe appellant professional fees as follows: –

“3.1.3 Professional fees all professional fees pertaining to thepre-contract services (Stages 1 & 2) shall be payableimmediately after the completion of pre-contractservices and stage 3 (post-contract payable periodicallyas work progress

The said consultancy agreement contains an arbitration clause asfollows:-

Any dispute arising of this agreement, which cannotbe settled, by mutual agreement shall be referred to anarbitrator, appointed in accordance with the provisionof the arbitration and Conciliation Act, Cap. 19 of 13LFN 1990 or any statutory amendment therein.

A dispute arose between the parties over the claims of the appellantthat it was entitled to be paid the sum of Sixty-Five Million, SevenHundred and Ninety Thousand, Six Hundred and Sixty-Three Naira, Eighty-Four Kobo (N65,790,663.84) as total outstanding servicefees and interest thereon by the respondent in accordance with theconsultancy service agreement for the respondent’s proposed StaffHousing Development. The dispute was referred to arbitration.Following conclusion of the arbitration proceedings, an award waspublished on 7-12-2007 in terms as follows: –

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1.That the respondent shall pay to the claimant, thesum of N47,179,820.15 (Forty-Seven Million, OneHundred and Seventy-Nine Thousand, Eight Hundredand Twenty Naira, Fifteen Kobo Only) being amountowing and outstanding.

2.That the respondent shall pay to the claimant thesum of N33,934,139.53 (Thirty-Three Million, NineHundred and Thirty-Four Thousand, One Hundred andThirty-Nine Naira, Fifty-Three Kobo Only) as interestup to the date of the award and thereafter at the rate ofN982,912.92 per month of N32,314.95 per day untilthe award is satisfied and discharged.

3.I further award that the respondent shall pay to theclaimant, the sum of N8,176,973.02 (Eight Million,One Hundred and Seventy-Six Thousand, NineHundred and Seventy-Three Naira, Two Kobo Only)as costs.

The respondent herein, by a motion on notice dated 26-2-2008 applied for the setting aside of the said arbitral award. Theappellant filed counter-affidavits in opposition of the applicationand also filed a motion on notice dated 11-7-2008 playing for anorder recognizing the award and an order granting it leave to enforcethe award. The respondents herein equally filed counter-affidavitsopposing same. The Federal High Court in its judgment of 11-5-2009 refused the application to set aside the awarding, holding thatit did not succeed and struck it out. It granted the application torecognize and enforce the award.

Dissatisfied with this decision, the respondent herein, bya notice of appeal filed on 14-5-2009, appealed to the Court ofAppeal. On 9-12-2010 the Court of Appeal delivered judgment inthe said appeal. It allowed the appeal, set aside the decision of thetrial court, held that there is merit in the application to set aside theaward and set aside the award.

Dissatisfied with this decision of the Court of Appeal, theappellant herein, with the leave of this court, filed a notice of appealagainst the said decision, commencing this appeal No. SC.73/2011.

Both sides have filed, exchanged and adopted their respectivebriefs as follows: