Arch. D. N. Iwuoha & Ors V. The Nigerian Council for Management & Ors. (2008)

LawGlobal-Hub Lead Judgment Report

HON. JUSTICE P. A. GALINJE, J.C.A.

By a writ of summons and a statement of claim both filed on the 23rd of January, 1994, the Appellants herein, who are the Plaintiffs at the High Court of Lagos State claimed against the Respondents who are the Defendants at the lower Court the following reliefs at paragraphs 25 and 26 of the said statement of claim thus:-

“25….. The total sum of N19,387,221.69 from the defendants jointly and severally being the aggregate sum and interest as at December 31, 1994 due all three plaintiffs in consonance with the pleadings in this statement of claim together with interest on that sum or on their respective shares at the rate of 23.5% as well after as before judgment from January 1, 1995 until completely paid.

26. The first plaintiff separately claims the sum of N14,761.85 pleaded in paragraph 19 of this statement of claim together with interest thereon at the rate of 23.5% as well after as before judgment from the date of service of the writ in this suit on the defendants until complete payment.”

Pleadings were filed and exchanged. Hearing was in progress, when the Respondents as defendants at the lower Court filed a notice of objection to the continued hearing of this suit on 5th May, 2004. The notice which is dated 22nd May, 2003 was brought pursuant to section 230 of the 1979 Constitution as amended by Decree 107 of 1993 and now restated under S. 251(1) of the Constitution of the Federal Republic of Nigeria 1999 and the inherent jurisdiction of the court. The grounds upon which the objection was raised as set out in the notice read as follows:-

“1. The Defendants are agencies of the Federal Government established and empowered under the Nigerian Council for Management Development Act Cap. 300, Laws of the Federation, 1990.

2. Under and by virtue of section 230 of the 1979 Constitution as amended by Decree 107 of 1993 which section is now restated as section 251(1)(p)(q)(r) of the Constitution of the Federal Republic of Nigeria 1999, jurisdiction in respect of actions against an agency of the Federal Government not withstanding the nature of the claim is vested exclusively in the Federal High Court.
3. This Honourable Court, being a State High Court, lacks the jurisdiction to entertain, hear and/or determine this suit.”

In line with the order of the trial Court, written addresses were filed and adopted. In a reserved and considered ruling, which was delivered on the 19th day of January, 2004, Lufadeju J. declined Jurisdiction on the ground that the Respondents are Federal Government agencies. She cited as authority for her decision the case of National Electric Power Authority v. Edegbero (2002) 18 NWLR (Pt. 798) 79 at 101 paragraphs B – D.

Being dissatisfied and aggrieved by the ruling aforesaid the Appellant have appealed to this Court. Their notice of appeal which is dated 2nd February, 2004 and filed on the 3rd February, 2004 contains four grounds of appeal.

In line with the relevant rules of this Court, parties filed their respective briefs of argument.

When this appeal came up for hearing on the 14th May, 2008, learned counsel for both parties identified and adopted their respective briefs of argument.

For the Appellants, three issues were distilled from the four grounds of appeal, for the determination of this appeal. The three issues, which are set out at page 2 of the Appellants’ brief of argument, are hereunder reproduced as follows:-

“1. Whether section 230(1)(P), (Q), (R), and (S) of Decree 107 of 1993 re-enacted under section 251(1) of the 1999 Constitution covers causes or matters relating to contractual obligations or simple contracts involving the defendants/respondents.

2. Whether the 1st defendants/respondents or any of the defendants/respondents in this suit is an Agent or Agency of tile Federal Government of Nigeria for the only reason that they were creation (sic) of the Nigerian Council for Management Development Act, Cap 300, Laws of the Federation of Nigeria 1990 and/or whether any such inference is discernible from the pleadings.
3. Whether in ay event, the learned trial Judge should have struck out the suit of the appellants in view of the provisions of section 22(2) and (3) of the Federal High Court Act Cap 134 Laws of the Federation of Nigeria 1990,”

Three issues were also formulated for the Respondents. These issues as reflected at page 3 of the respondents’ brief of argument read as follows: –

“1. Whether the 1st Respondent and indeed all the respondents are agents/agencies of the Federal Government of Nigeria.

2. Whether the High Court has jurisdiction in respect to claims arising from the exercise of the agency’s management and administrative functions.
3. Whether the High Court has the power to transfer suits in which it lacks jurisdiction to the Federal High Court,”‘

I have read through the ruling, which is the subject of this appeal and the briefs of argument of both parties, and I am of the firm view that the only issue calling for the determination of this appeal is, whether the Lagos State High Court has jurisdiction to entertain the claim of the Appellants.