Barnax Engineering Company Nigeria Limited v. Government Of Rivers State & Ors (2024)

LAWGLOBAL HUB Lead Judgment Report – SUPREME COURT

HELEN MORONKEJI OGUNWUMIJU, JSC (Delivering the leading judgment)

This is an appeal against the judgment of the Court of Appeal, Abuja Division delivered on 18th February, 2010 Coram: Abba-Aji, Aboki and Lokulo-Spdipe, JJCA wherein the court below allowed the respondents’ appeal and set aside the judgment of the trial court delivered on 25th October, 2005.

By the judgment of the learned trial court, Coram Husseini Mukhtar, J., the respondents were ordered to pay the appellant the sum of N186,365,852.99 as per the appellant’s claim filed under the Undefended List.

The facts that led to this appeal are as follows:

The appellant entered into a contract of supply with the 1st respondent. The subject of the contract of supply was that the appellant would supply to the said 1st respondent four (4) Princess Cruise Boats. According to paragraph 8 of the claim, “most of the negotiations of the contract” between the parties, took place in Abuja. Eventually, negotiations were concluded and the contract came into being as a result of which, the appellant, in performance of his own part, placed orders overseas and eventually supplied the four Princess Cruise Boats to the respondents.

Thereafter, the appellant, on the request of the respondents, forwarded the documents pertaining to the purchase to the respondent and expected his payment, having fulfilled his part of the contract. Having waited without success for his payment, the appellant petitioned to the Presidency to intervene in the matter.

The verification and conclusion of the contract was made by a Committee set up by the respondents in Port Harcourt, including several letters the appellant wrote to the respondents demanding payment. The respondents paid the sum of N9,853,610.90 (Nine Million, Eight Hundred and Fifty Three Thousand, Six Hundred and Ten Naira, Ninety Kobo) as part-payment of the originally owed sum. The appellant issued a writ, not in the Rivers State High Court, but in the Federal Capital Territory High Court, Abuja, under the undefended list procedure claiming the balance of the debt.

The claim is set out below:

a. The sum of N185,688,938.92, being the principal outstanding balance for the supply of four(4) units of Princess 330 cruise boats to the defendants.

b. The sum of N676,914.07, being the balance for the supply of generating plants to the defendants.

c. The total sum of N186,365,852.99 (One Hundred and Eighty-Six Million, Three Hundred and Sixty-Five Thousand, Eight Hundred and Fifty-Two Naira, Ninety-Nine Kobo) only.

The writ of summons and the affidavit in support were duly served on the respondents. The matter was adjourned to 25th October, 2005 for hearing. On the return date i.e. 25 October, 2005, the respondents despite being served with processes neither entered any appearance nor filed any notice of intention to defend as enjoined by the rules of the trial court. In the absence of a notice of intention to defend, the learned trial court was urged to comply with the provisions of order 21 rule 4 and to enter judgment for the appellant.

Judgment was accordingly entered for the appellant as per her claims under the Undefended List. The respondents appealed.

Before the court below, the respondents vigorously contended that the learned trial court had no jurisdiction to entertain the suit.