Ayo-ayodele Pharmaceutical Chemist (Nigeria) Limited V. The Nigeria Industrial Development Bank Limited (2000)

LawGlobal-Hub Lead Judgment Report

ONNOGHEN, J.C.A.

This is an appeal against the interlocutory decision of the Federal High Court of Justice Ilorin Division. In Suit No. FHC/IL/5/96, presided over by Hon. Justice A. A. Jege, delivered on the 6th day of November, 1996, in which he dismissed the then plaintiffs now appellant’s application for an order of interlocutory injunction. Dissatisfied with the said ruling, the appellant has appealed to this court.

The facts of the case as can be gathered from the record of proceedings are that, appellant applied for and was granted financial assistance to enable her set up a cotton wool sanitary towel factory at Offa in Oyun Local Government Area of Kwara State. As a Security for the loan the appellant mortgaged its fixed and floating assets to the respondent.

The appellant later defaulted in the repayment of the loan and interest making it necessary for the respondent to write several letters to the appellant demanding repayment and threatening to exercise its powers under the mortgage agreement. To pre-empt the respondents from carrying out that threat the appellant instituted this action in the Federal High Court Ilorin vide a writ of summons filed on 22/2/96 in which it claims as follows:-

“Writ of Summons:

The plaintiff’s claim against the defendant is for:-

A. A Declaration:

(i) That as at 31/1/96, the plaintiffs total indebtedness to the defendant amounted to N5,810, 104.62 (Five Million, Eight Hundred and Ten Thousand, One Hundred and Four Naira, Sixty-Two kobo).

(ii) That the Defendant has breached its loan and Mortgage Agreement with the plaintiff thereby causing it serious delay and losses.

B. An Order on the Defendant:

To refund to the plaintiff the accumulated interest of 98,259.84 U.S. Dollars on the undisbursed and unutilised NERFUND Foreign Currency Long Term Loan from 30/5/91 to 13th October, 1994 plus interest on the same up to 31/01/96.

C. N5,000,000.00 (Five Million Naira) as General and Special Damages for breach of provision of working Capital as provided for in the Mortgage/Loan Agreement between the plaintiff and the Defendant.

D. All Injunctions

Restraining the Defendant, its servant or Agents from:-