Ayliu Quarry Asphalt Limited & Ors v. Asset Management Corporation Of Nigeria (2025)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

BINTA FATIMA ZUBAIRU, JCA (Delivering the leading judgment)

This is an appeal against the judgment of the Federal High Court, Ibadan and delivered by Hon. Justice J. O. Abdulmalik on the 7th day of April, 2020, in suit No: FHC/CS/81/2018 wherein the judgment was in favor of the respondent.

Succinctly, the facts of the case leading to this appeal are as follows: On the 29th day of January, 2008, the 1st appellant obtained a loan from Eco Bank Plc, in the sum of N153,767,413.17 (One Hundred and Fifty Three Million, Seven Hundred and Sixty Seven Thousand, Four Hundred and Thirteen Naira, Seventy One Kobo), the loan was secured with the 2nd appellants property located at Plot 7, Block VIII, Orita Bashorun Estate, Ibadan with the 4th appellants stock including plants, machinery, raw materials, fittings, electronic gadget and finished products located at the 4th appellants Yard at TCTC yard Eleyele, Ibadan in a deed of debenture dated 29th January, 2008.

Again, in the year 2010 the 1st appellant obtained another loan through the Bank of Industry into its Ecobank Plc Account with the total sum of N291,001,813.12 (Two Hundred and Ninety-One Million, One Thousand, Eight Hundred and Thirteen Naira, Twelve Kobo) which was compounded with its earlier loan, both of which were left unpaid by the appellants.

The above debts were taken over by the respondent from Ecobank Plc through a loan purchase agreement dated the 6th April, 2011.

After the respondent took over the loan, Eco Bank wrote to the 1st appellant informing it of its indebtedness to the respondent and made a demand to repay the loan.

Upon the demand, the appellants paid the sum of N78,000,000.00 (Seventy Eight Million Naira) to the respondent and did not take any further action to pay the outstanding loan. As a result of the appellants failure to pay the outstanding loan, the respondent (claimant at the trial court) filed claimants amended statements of claim dated and filed on the 20th day of February, 2019, wherein the respondent (claimant) claimed against the appellants (defendants at the trial court) jointly and severally as follows:

a. An order granting judgment against the defendants in the sum of N508,566,789.94 (Five Hundred and Eight Million, Five Hundred and Sixty Six Thousand, Seven Hundred and Eighty Nine Naira, Ninety Four Kobo) being the debt owed the 1st defendant to the plaintiff as at 31st of March, 2018.

b. Interest at the rate of 15% per annum on the judgment debt against the defendants, effect from 31st March, 2018 until the date of judgment.

c. Interest at the rate of 15% per annum on the judgment debt against the defendants, from the date of judgment until the judgment is fully liquidated.

d. An order granting the plaintiff power to foreclose:

i. The property lying, situate and municipally known and addressed as Plot 7, Block VIII, Orita Basorun Estate, Ibadan.

ii. Plot 4, Block XVI, Orita Bashorun Estate, Ibadan, Oyo State.

iii. House 9 Road 13, Housing Corporation Estate, Akobo, Ibadan, Oyo State.