Antonio Oil Company Limited v. Assets Management Corporation Of Nigeria (AMCON) (2024)

LAWGLOBAL HUB Lead Judgment Report – SUPREME COURT

STEPHEN JONAH ADAH, JSC (Delivering the leading judgment)

This is an appeal against the decision of the Court of Appeal, Lagos Division delivered on 21st day of June, 2017.

The facts of this case are straightforward. The respondent who was the plaintiff at the trial court took out a writ of summons claiming the following reliefs:

a. The sum of N74,400,178.37 being the amount owed the claimant by the defendant as of 31st December, 2008 on account of the overdraft facility granted the defendant by the plaintiff.

b. Interest on the amount claimed on “1” above at the rate of 17% per annum from 1st of January, 2009 until judgment and thereafter at the same rate till liquidation of the judgment debt.

The writ was placed on the undefended list sequel to an order of the trial court made on 3rd day of February, 2009. A notice of Intention to defend was filed by the defendant and was later argued. The trial court on 4th of August, 2009 ruled and ordered that the suit be transferred from the undefended list to the General Cause List to be heard on merit.

The suit was then heard and the trial court entered judgment in favour of the respondent for the sum of N61,255,923.79 being the amount owed the respondent by the appellant as at 31st October, 2009, on account of the Overdraft facility granted the appellant by the respondent.

The counter-claim of the appellant was dismissed by the trial court. Aggrieved by the decision of the trial court, the appellant appealed to the Lagos Division of the lower court. The lower court after hearing the appeal also dismissed the appeal.

The appellant was dissatisfied by the judgment of the court below, so she further appealed to this court. As required by the rules of this court, the record of appeal was transmitted to this court on 12th February, 2020. The appellant’s amended brief of argument which was settled by Godwin C. Anyafulu, Esq., was filed on 18th June, 2021.

The respondent filed an amended brief of argument on 13th August, 2021. An amended reply brief was filed by the appellant on 18th June, 2021. The appellant distilled four issues for determination in his amended brief while the respondent distilled three issues for determination.

The four issues of the appellant are worded as follows:

A. Having regard to the wording of paragraphs 19 and 20 of the appellant’s statement of defence and counter-claim whether it can be said that same amounts to admission such as to discharge the burden on the respondent of proving the alleged indebtedness of the appellant in the amount of N61,255,923.97 alleged to comprise of principal, interest and charges. (Distilled from ground 1 of the grounds of appeal).

B. Whether the Court of Appeal was right in holding that exhibit F, G and J were not made on the understanding that the said exhibits will not be used by the respondent to support her case in court when same (the exhibits) were letters exchanged between parties in the course of finding an amicable settlement of the parties’ difference and contained offers of compromise. (Distilled from ground 2 of the grounds of appeal).

C. Whether the lower court was right in holding that clause 7 of exhibit A (under the heading “other terms and conditions’) gives the respondent the liberty to call at any time before the expiration of its tenor of 180 days and in effect breaching the contract. (Distilled from grounds 3 and 4 of the grounds of appeal).