Champion Breweries PLC V. Specialty Link Limited & Anor (2014)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

ITA G. MBABA, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the judgment of Kaduna State High Court, in Suit No. KDH/KAD/185/99, delivered on 13/6/2003 by Hon. Justice J. Abiriyi (as he then was), wherein his Lordship entered judgment for the Plaintiff (now 1st Respondent) and awarded 8% interest on the original sum of N21,750,000.00 loaned to the 1st Defendant (now Appellant) and guaranteed by the 2nd Defendant from 6/4/98 to the date of full liquidation. The trial court had dismissed the claim for special and general damages, sought by the 1st Respondent.

Appellant was granted extension of time/leave by this court, on 19/4/04, to file this appeal and it did so as per pages 266 to 267 of the Records of Appeal, disclosing 3 grounds of appeal, as follows:

(1) The Learned Trial Judge erred in law when he assumed jurisdiction to entertain this suit when the court lacked the jurisdiction to entertain same.

PARTICULARS OF ERROR

(a) The contract, the subject matter of the action, was entered into in Uyo, Akwa Ibom State.

(b) The Defendants in the suit are resident in Uyo, Akwa Ibom State.

(c) The performance and/or object of the contract was in Uyo, Akwa Ibom State.

(2) The Learned Trial Judge erred in Law in awarding the claim of interest to the plaintiff as there was no basis for interest in the loan agreement.

PARTICULARS OF ERROR:

(a) The loan granted by the plaintiff to the 1st Defendant was clearly agreed to be interest fee.

(b) The supposed oral agreement, by the 2nd Defendant to pay 8% interest on the loan is invalid as the 2nd Defendant, not being a principal party to the loan agreement, cannot agree to any interest without the principal party.

(c) An oral agreement cannot alter a written agreement.

(3) The Learned Trial Judge erred in law by calling on the Plaintiff to address the Court on the same day the Defendants were foreclosed, from cross examining PW2 and thereby denied defendants fair hearing.