Abigail Mojibola Majekodunmi & Anor V. National Bank Of Nigeria Ltd (1978)

LawGlobal-Hub Lead Judgment Report

FATAYI-WILLIAMS, J.S.C. 

The late Chief Adebiyi Majekodunmi, as plaintiff, claimed against the National Bank of Nigeria Ltd. in the High Court of the former Western State at Ibadan the sum of 9, 680 (N19, 360) whereof the sum of 8,000 (N16,000) was claimed as balance due to him for the assignment by him to the defendants of his leasehold property at New Court Road, Ibadan.

The property was at all material times occupied by the West African Drug Company Limited. The balance of 1,680 (N3,360) was claimed as 10% compound interest on the said sum of 38,000 (N16,000) from April, 1969 to April, 1971 the month before he commenced proceedings.

The late Chief Majekodunmi was a legal practitioner in his life time. The defendants are bankers. By a deed of lease dated 1st November, 1957, the Ibadan Provisional District Council granted to the plaintiff the lease of a piece of land situated along New Court Road, Ibadan, for a term of 99 years from 1st January, 1948. The plaintiff, by virtue of a deed of sub-lease dated 21st April, 1959, sub-leased the said piece of land to the West African Drug Company Limited for a term of 30 years from 1st April, 1958. This sub-lease was later exchanged by the plaintiff for one for a term of 60 years by a deed of surrender and re-lease dated 22nd November, 1963.

In 1962, the plaintiff mortgaged the said property to the defendants as security for a loan of 1,500 (N3,000) which he obtained from the defendants. In 1968, when the plaintiff failed to repay the loan, the defendants threatened to sell the property. As a result of this threat, the plaintiff started negotiations with the defendants for the absolute assignment to them of the lease of the said property. According to the averments in paragraph 9 of the plaintiff’s state of claim, it was agreed by both parties during the negotiations that the assignment would be granted in consideration of the sum of 13,671.8.3p and that after crediting his account with the sum of 1,671.8.3p the defendants would pay him (the plaintiff) the balance of 12,000 (N24,000). The plaintiff also averred in paragraph 10 of his statement of claim as follows:

“10. The plaintiff’s account was accordingly credited with the said sum of 1,671.8.3p and 4,000 was paid by cheque to the plaintiff accompanied by a letter stating that the balance of N8,000 would be paid after the plaintiff shall have put the defendants into possession of the property”. The letter referred to in paragraph 10 of the statement of claim was admitted in evidence as Exhibit D and it reads:

“Ref. No. LAW/G.13/45

National Bank Nigeria Ltd

P.M.B.12123.

LAGOS.

15th March, 1969

Chief A.A. Majekodunmi Iddo House

P.O. Box 159

LAGOS.