Amalgamated Trustees Limited V. Nigerian Intercontinental Merchant Bank Limited & Anor (2000)

LawGlobal-Hub Lead Judgment Report

OGUNTADE, J.C.A.

The appellant/company as the plaintiff before the Lagos High Court in suit No.LD/18/98 had claimed against the two respondents (as the defendants) the following reliefs:

“(i) A declaration that the 1st defendants are not entitled to sell, alienate or otherwise dispose of, whether by private treaty or public auction or otherwise howsoever, the plaintiff’s property situate at No. 24A Campbell Street, Lagos (also known as the “Rooftop”).

(ii) A declaration that the 1st defendant does not have any enforceable security interest in the plaintiff’s property situate at No. 24A Campbell Street, Lagos (also known as the Rooftop).

(iii) A declaration that any power of sale which may exist by virtue of the Deed of Legal Mortgage dated 13th June, 1991 and registered as No. 37 at page 37 in volume 1920 of the Land Registry Office at Lagos is not available to and cannot be exercised by the 1st defendant.

(iv) A declaration that the auction notices published in the Guardian Newspaper of 1st January, 1996 and the Daily Times Newspaper of 2nd January, 1996 by the 1st and 2nd defendants are unlawful, illegal, null, void and of no effect whatsoever.

(v) An order that a reconciliation be undertaken of the plaintiff’s account with the 1st defendant from inception to date and that any unlawful and incorrect entries therein be reversed.

(vi) An order of perpetual injunction restraining the 1st and 2nd defendants whether by themselves, their agents, privies, successors-in-title, assignees or any other person acting for or on their behalf from selling, disposing or in any other manner alienating the plaintiffs property situate at No. 24A Campbell Street, Lagos (also known as the “Rooftop”) whether by public auction, private treaty or otherwise howsoever”.

It is necessary that I state here that a company called Associated Discount House Limited brought an application and was joined as 3rd defendant to the suit although the plaintiff had not brought any claims against the said company. The said company, hereinafter referred to as Associated Discount House Limited, would appear to have received a measure of support or co-operation from the 1st defendant as will be revealed shortly. Associated Discount House claimed that the plaintiff was also indebted to it. The said Associated Discount House was joined to the suit. The plaintiff filed its statement of claim. The 1st defendant jointly with Associated Discount House filed a statement of defence and counter-claim against the plaintiff.

The plaintiff later brought an application that the counter-claim made against it by Associated Discount House is struck out. The lower court on 12 October, 1998 made an order striking out the counter-claim, once the counter-claim by Associated Discount House was struck out, it ceased to have any relevance in the proceedings. In order to formalise the irrelevance of Associated Discount House in the proceedings and certainly for other purposes, the plaintiff brought an application praying for the following orders:

“(1) Striking out the name of Associated Discount House Limited as a defendant in this suit, consequent upon the order of the Honourable Court made on the 12th October, 1998 striking out the counter-claim of the 3rd defendant.

(2) Directing the 1st defendant to amend its statement of defence and counter-claim consequent upon prayer 1 above and consequent upon the court’s order of 12th October, 1998.

(3) Extension of time within which the plaintiff/applicant herein may file and serve its reply and defence to the 1st defendant’s statement of defence and counter-claim.

(4) Leave to the plaintiff/applicant to file and deposit with the Chief Registrar of the High Court within 30 days from the order of the court, a bank guarantee from a first class bank in Nigeria for the sum claimed in the 1st defendant’s counter-claim with interest to the eventual determination of this suit.