Adebisi Macgregor Associates Limited Vs Nigeria Merchant Bank Limited (1996)

LAWGLOBAL HUB Lead Judgment Report

OGWUEGBU, J.S.C.

This is an appeal against the judgment of the Court of Appeal, Lagos Division dated 30/11/89. The appellant herein was the respondent in the court below and the plaintiff in the court of trial.

The plaintiff’s claim is for judgment against the defendant in the sum of N3,321,312.00 being the balance of the price of goods sold by the plaintiff to Messrs Bol-Bol & Company Ltd. under a letter of guarantee dated the 2nd April, 1986 given to the plaintiff by the defendant, and interest thereon at the rate of 13% from the 15th day of June, 1986 until judgment and thereafter interest at the same rate until the whole debt is settled.

On 17/3/86 the plaintiff entered into an agreement with Bol-Bol & Co. Ltd for the importation and supply of 14,000 bales of Norwegian stockfish to the latter for a total sum of =N=11,445,000.00. The plaintiff averred that by a letter of guarantee dated 2/4/86, the defendant gave an undertaking to the plaintiff as follows:

“Messrs Adebisi MacGregor Associates Ltd.,

Macgregor House,

Ilawo,

Off Ago-Ika,

Road,

P.O. Box 2706,

Abeokuta, Ogun State.

Dear Sir,

RE: BOL-BOL & CO. LIMITED 14,000 BALES OF NORWEGIAN STOCKFISH YOUR PROFORMA INVOICE NO. 020/86 OF 12/3/86

We have been appointed Bankers and Trustees to the above named Company in respect of the importation and sale of the above consignment. In pursuance of this, we hereby guarantee that the sum of N11,445,000.00 (Eleven Million, Four Hundred and Forty-Five Thousand Naira only) will be placed to the credit of your account with us for disbursement in accordance with your instructions on presentation of complete set of ORIGINAL SHIPPING DOCUMENTS and within two working days of arrival of the carrying vessel in Nigeria.