Blessed Innoma Ent. Nig. Ltd. & Anor V. Union Bank Of Nigeria Plc. (2013)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

MOJEED ADEKUNLE OWOADE J.C.A. (Delivering the Leading Judgment)

This is an appeal against the judgment of C.E. Iyizoba J. in the Onitsha Judicial Division of the Anambra State High Court of Justice sitting at Otuocha delivered on the 18th day of July 2005.

The Plaintiffs/Appellants claim against the Respondent crystalised in their further Amended Statement of Claim dated and filed on 27/4/2004.

Paragraph 19 of the said Plaintiffs/Appellants pleading aver thus:

19. Wherefore, the Plaintiffs claim from the Defendant as follows:

(a) An order of court restraining the Defendant or her agents from exercising her right of lien in respect of the security held for this facility which is the property located at 233 Works Layout Owerri, Imo State pending the determination of the suit.

(b) Immediate refund to the Plaintiffs of the sum of Eight hundred thousand naira (N800, 000.00) being lodgement made by the 2nd plaintiff into the Plaintiff’s account number 00024/01 090 with the Defendant’s bank.

(c) A declaration that the Plaintiffs are not indebted to the Defendant bank in the sum of five hundred and fourteen thousand, eighty naira, seventy two kobo (N514, 080.72) as contained in the Defendant’s letter dated 4/6/93 or any amount at all.

(d) A declaration that the Defendant is not entitled to charge more than the agreed interest rate of 29.5% without the mutual agreement of both parties.

(e) A declaration that the Defendant is not entitled to operate or juggle with the 1st Plaintiffs account number 00024/01 090 without the authorization of the Plaintiffs.

(f) N10,000.000.00 (Ten million naira) general damages for unlawfully tampering or juggling with the 1st Plaintiff’s account aforesaid without the consent of the Plaintiffs and for injuries suffered in consequence thereof.

By its Amended Statement of Defence dated 8/4/1994 and filed on 14/4/94, the defendant contend that the Plaintiffs/Appellants are not entitled to the reliefs claimed and urged a dismissal of the Plaintiffs/Appellants suit.

The facts of the case are as follows: The 1st Appellant, a Limited Liability Company of which the 2nd Appellant is its Managing Director maintained an account for its business with the defendant bank at its New Market Road Onitsha Branch. By an offer letter admitted in evidence as Exhibit B, the Respondent bank granted the 1st Appellant an overdraft facility of N250, 000.00 under terms and conditions stated therein. In particular, the Plaintiffs claimed the rate of interest agreed was 29.5%. As security for the facility, the 2nd Appellant’s property situate at Plot 223 Work Layout Owerri was mortgaged to the Respondent. The deed of legal mortgage was admitted in evidence as Exhibit A.

When the Appellants received the statement of account for September and October, 1992, they noticed some irregularities.

For example, a cash deposit of N100,000.00 credited to the Appellant’s account of 29th of September 1992 was reversed to debit. A cash lodgment of N300,000.00 was on record on 30/11/92 and reversed to debit on 1/12/92.