Allied Bank Of Nigeria Limited V. Jonas Akubueze (1997)

LAWGLOBAL HUB Lead Judgment Report

I. IGUH, J.S.C 

In the High Court of former Anambra State of Nigeria, the plaintiff, who is now the respondent, instituted an action against the appellant, who therein was the defendant, claiming as follows:-

“The plaintiff claims the sum of N1000,000.00 (One Million Naira) in damages whereof N500,000.00 (Five Hundred Thousand Naira) is general damages and N500,000.00 (Five Hundred Thousand Naira) is exemplary damages for breach of contract between the plaintiff – a trader- and the defendant – Commercial bankers – by dishonouring cheque No. C/D. ONSA 721289 for N7,100 only drawn by the plaintiff on his account No. 1028 held in the defendant’s bank at No.4 Oguta Road, Onitsha and deliberate refusal of the defendant to allow the plaintiff to operate the said account thereby frustrating his business.

Further or other reliefs.”

Pleadings were ordered in the suit and were duly settled, filed and exchanged.

The plaintiff who at all material times was a customer of the defendant bank maintained two distinct and separate current accounts with it. These are account No. 1028run in the registered business name of New World Supermarket and Account No. 126 which he operated under the name of Joe Brown Commercial Agencies. Account No. 1028 was used by the plaintiff for his local business, but Account No. 126 was being operated in connection with his international or Overseas import business only.

It is not in dispute that the plaintiff was the sole signatory to both accounts. The case for the plaintiff is that on the 13th June, 1986, the defendant wrongfully dishonoured Exhibit A, his cheque No. C/D ONS A21289 for the sum of N7,100.00 drawn on his Account No. 1028. His account No. 1028 was at all material times in credit in the sum of over N7, 100.00 which was the value of his dishonoured cheque, Exhibit A. ‘He stated that at no time did he authorise the defendant to combine his Account No. 1028 with Account No. 126. He explained that he was not the sole owner of Account No. 126, that he owned it jointly with one Ifeanyi Ngoluand Emmanuel Oraezueme and that the said Account No. 126 had nothing to do with his Account No.1028. He admitted signing Exhibit 0 when he applied for an overdraft in account No. 126. He however claimed that he did not know its details as he did not read it before he signed the same. He founded his claim on the dishonour of his cheque Exhibit A on Account No.1028 when there was sufficient funds in that account to cover Exhibit A.

The case for the defendant is that both Accounts numbers 1028 and 126 were owned by the plaintiff who, also, was their sole signatory. It asserted that as at the 13th June, 1986 on which date Exhibit A was drawn on Account No. 1028, the defendant had accrued a debit of N11,497.26 in his Account No. 126. It however admitted that as at the said 13th June, 1986 when Exhibit A was presented for payment, Account No. 1028 was in credit to the tune of N7,276.36. The defendant denied combining the plaintiff’s Accounts Numbers 1028 and 126. It merely withheld the plaintiff’s balance in his account No. 1028 until he serviced his obligation to the bank in respect of Account No. 126. It explained that this is normal and in accordance with banking rules and regulations. It was pursuant to these rules and regulations that the plaintiff’s cheque, Exhibit A, for N7,100.00 which is the basis of this action, was returned unpaid. Additionally the defendant made reference to Exhibit 0, under which it claime it could also dishonour the cheque Exhibit A. Exhibit 0 is the document signed by the plaintiff following his application to the defendant for an overdraft in account No. 126. This application for a three month temporary overdraft is Exhibit N. The defendant rested its justification for combining the two accounts in Exhibit 0.

At the conclusion of hearing, the learned trial Judge, Nweje, J. after an exhaustive review of the evidence on the 31st day of July, 1992 found for the plaintiff in the sum of N72,000.00 being exemplary damages for the wrongful dishonour of the plaintiff’s cheque drawn on account number 1028 with the defendant bank when the said account had sufficient funds to cover the cheque.

Said the learned trial Judge:-

“It is my considered view that the defendant’s treatment of the plaintiff was outrageous and cruel enough to entitle him to damages which I assess at N72,000.00. The judgment of this court is therefore hereby entered for the plaintiff for the sum of N72,000 against the defendant plus costs assessed at N2,000, making a total of N74,000.00.”

Being dissatisfied with this judgment, the defendant lodged an appeal to the Court of Appeal, Enugu Division which in a unanimous decision dismissed the appeal on the 13th day of February, 1995.

Aggrieved by this decision of the Court of Appeal, the defendant has further appealed to this court. I shall hereinafter refer to the plaintiff and the defendant in this judgment as the respondent and the appellant respectively.

Altogether, six grounds of appeal were filed by the appellant. These grounds of appeal, without their particulars are as follows:-