Ecobank Plc v. Olatunde Farayola & Ors (2025)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

ABDU DOGO, JCA (Delivering the leading judgment)

This appeal is against the ruling of the High Court of Justice of Oyo State sitting in Ibadan (the lower court) in suit No: I/712/2008 delivered on 3rd of March, 2011 by E. Esan, J.

Brief facts of the appeal

The 1st to 22nd respondents who were the claimants before the lower court filed an action “for themselves and on behalf of all the subscribers of Pennywise Royal Heritage Limited” against the 23rd respondent, Pennywise Royal Heritage Limited, who was the defendant before the lower court claiming the sum of N94,091,930:00 (Ninety four million, ninety one Thousand, nine hundred and thirty naira) only being money invested with the 23rd respondent and which the 23rd respondent has refused to pay to the 1st – 22nd respondents in spite of repeated demands.

On 1st of August, 2008 the lower court gave judgment in favor of the 1st – 22nd respondents for the amount claimed against the 23rd respondent.

Thereafter, the 1st – 22nd respondents initiated garnishee proceedings to attach the 23rd respondent’s monies in its account with the garnishee now appellant in this case. Subsequently, an order nisi was made by the lower court and served on the appellant to show cause why it should not be ordered to pay the judgment debtor’s money in its custody to the 1st – 22nd respondents to satisfy the judgment debt.

After the service of the order nisi on the appellant and in compliance with the order to show cause, the appellant through its solicitor filed an affidavit on 15th August, 2008 in which it stated that the credit balance in the account of the 23rd respondent with the appellant as at 15/8/08 was N49,229,626.74 (Forty-nine million, two hundred and twenty-nine thousand, six hundred and twenty-six naira seventy-four kobo) only.

The garnishee/appellant later filed a second affidavit to show cause in which it stated that the amount standing to the credit of the judgment debtor had been paid out to various persons and there was nothing left in the account of the judgment debtor.

The lower court per Lufadeju, J. after considering the two affidavits to show cause filed by the appellant and the further affidavits filed by the 1st – 22nd respondents, on the 23rd of April, 2009 made the order nisi absolute and directed the appellant to pay to the 1st – 22nd respondents the sum of N49,229,626.74 (Forty-nine million, two hundred and twenty-nine thousand, six hundred and twenty-six naira seventy-four kobo) only.

Dissatisfied with the order absolute, the appellant lodged an appeal against it. However, the appellant subsequently filed an application dated 14th May, 2009 to set aside or discharge the order absolute made on the 23rd of April, 2009.

After hearing the application, the lower court, per Esan, J. on 3rd of March, 2011 dismissed the application on the ground that it had no jurisdiction to set aside the garnishee order absolute because it was a final order and that the only remedy open to the garnishee was to lodge an appeal against it.

The appellant dissatisfied with the ruling of 3rd of March, 2011 filed a notice of appeal against it on the same date, which is at pages 261 to 263 of the record of appeal. However, the appellant filed an amended notice of appeal on 25th of June, 2018, which was deemed by this court on 6th of March, 2019 as properly filed and served on the same date. The amended notice of appeal contains six grounds of appeal, which are reproduced hereunder:

Grounds of appeal

1. The learned trial judge erred in law when she held she lacked the jurisdiction to discharge the order of decree absolute made on 23rd April, 2009 because the court had become functus officio.

Particulars