Ecobank Nigeria Plc V. Intercontinental Bank Plc & Ors. (2011)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

JOHN INYANG OKORO, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the Ruling of the Lagos State High Court in Suit No. LD/764/2008 delivered on 10th February, 2009 by Hon. Justice A. Olateru-Olagbegi.

The 1st Respondent herein which was the Claimant at the court below instituted a suit against the Appellant as the 3rd Defendant and the 2nd and 3rd Respondents as the 1st and 2nd Defendants respectively. The 1st

Respondent in its statement of claim dated 30th June, 2008 claimed against the Defendants jointly and severally as follows:

“(1) The sum of USD$889, 430 or its Naira equivalent as at october 2009 at the rate of N130 per USD totaling N115, 620, 900 being the sum realized from the sale of the 4, 500 metric tones of Low pour Fuel oil financed by the claimant which the 1st Defendant fraudulently diverted to the 3rd Defendant.

(2) Interest on the amount claimed in “I” above at the rate of 21% per annum being the agreed interest for the facilities from 1st November, 2005 till Judgment and thereafter at the same rate till liquidation-of the Judgment debt.

OR, ALTERNATIVELY,

(3) The sum of N140, 359, 672.44 as at 31st day of May, 2008, being the amount owed the claimant by tie 1st and 2nd Defendants on account of the facilities granted the 1st Defendant by the claimant which was granted by the 2nd Defendant; and

(4) Interest on the amount claimed in “3” above at the rate of 31% per annum being the agreed interest rate for the facilities from 1st June, 2008 till Judgment and thereafter till liquidation of the Judgment debt’.

Upon service of the originating processes on the Defendants, the Appellant filed a Notice of Preliminary Objection dated 11th July, 2008 challenging the Jurisdiction of the Lagos State High Court to entertain the claim against the Appellant. After hearing argument from both counsel for the parties, the learned trial Judge delivered his Ruling on 10th February, 2009 dismissing the preliminary objection and held that he has Jurisdiction to entertain the 1st Respondent’s claim against the Appellant.

The Appellant, being dissatisfied with this Ruling, filed Notice of Appeal on 13th February, 2009 against the Ruling. As can be seen, the said Notice of Appeal was filed within time. Two grounds of appeal are contained in the said Notice. In keeping with the practice in this court, parties filed and exchanged briefs. In the brief settled by Fred Onuoha Esq. on behalf of the Appellant, one issue has been distilled for the determination of this appeal. The lone issue as contained on page 3 of the brief states:-

“Whether or not the lower court has Jurisdiction to entertain the claims of the 1st Respondent (a bank) against the Appellant (also a bank) in view of the provisions of Sections 251 (1) (d) of the Constitution of the Federal Republic of Nigeria, 1999”.

In the 1st Respondent’s brief filed by its counsel, Nick Omoye Esq., the same issue is formulated but couched differently thus:-

“Whether the 1st Respondents claim in the suit before the court below is within the Jurisdiction of the Lagos State High Court or the Federal High Court”.