Bank Of Baroda Vs Iyalabani Company Limited (2002)

LAWGLOBAL HUB Lead Judgment Report

O. EJIWUNMI, J.S.C.

This appeal is against the majority decision of the court below (Coram, Onalaja & Acholonu, JJCA, with Ayoola, JCA dissenting). This action was commenced by the plaintiff in the High Court of Lagos State, when a writ was issued against the defendant. In this judgment, I will reproduce the statement of claim without its particulars. This is because that part of the statement of claim is not in dispute in this appeal. The relevant portion of the statement of claim reads:

“(1) The defendant duly accepted the bills of exchange, particulars of which appear hereunder, drawn by Meltroid Limited payable at 90 days after sight to the order of the plaintiff.

Particulars

………………………………………..

(2) On the due date of each of the said bills of exchange, the said bills were dishonoured by the defendant by non-payment.

(3) And the plaintiff as holder claims against the defendant as acceptor:

(a) the sum of US$2,267,007.90 or its equivalent in naira at the date of judgment.

(b) the sum of DFL 1,979,033.41 or its equivalent in naira at the date of judgment.

(c) interest on the said sums at the rate of 6% per annum from the date of the writ herein until payment.”

Upon being served with the writ and the statement of claim, the defendant also filed its own statement of defence. Following the filing of its statement of defence, a motion on notice dated 12/3/87 was filed and served by the defendant for an order striking out the statement of claim herein and in particular “Bank of Baroda as plaintiff therein as it disclosed no reasonable cause of action.”

The grounds upon which the respondent sought for the order to strike out the appellant’s suit are as follows: –

“(i) The plaintiff has no locus standi to bring this action

(ii) The plaintiff is incompetent to institute the action on the face of the statement of claim.”