Chief P. D. C. Okenwa V. Military Governor, Imo State & Ors. (1996)

LAWGLOBAL HUB Lead Judgment Report

IGUH, J.S.C. 

The plaintiff, who is respondent in this appeal maintained a current account with the Asaba branch of the appellant bank. On 2nd July, 1984, the respondent issued a cheque for N15,000.00 to a trading partner, one Ifeatu Onuorah & Company. The cheque was presented on 11th July, 1984 for payment.

But it was dishonoured because as at the time the respondent had only N7,621.24 standing as balance in his current account. The respondent who believed that at the time he had enough money in his account to meet the said cheque felt greatly injured as to his credit and trade. He pleaded that he suffered loss and damage.

Consequently, the respondent instituted the present action against the appellant claiming the sum of N100,000.00 being special and general damages for wrongful dishonour of his cheque. In the alternative, he claimed for N 100,000.00 special and general damages for negligence. At the end of the trial, and in a considered judgment, the learned trial judge agreed that the respondent was entitled to damages for the appellant’s wrongful dishonour of his cheque. The court thereafter awarded the respondent N28,266.00 as special damages and N11,734,00 as general damages.

Being dissatisfied with the decision, the appellant bank appealed to the Court of Appeal. The Court of Appeal, per the judgment of Isa Ayo Salami, J.C.A. with which Ogundare, J.C.A. (as he then was) and Ejiwunmi, J.C.A. concurred, dismissed the appeal. The appellant has now come before this court on four grounds of appeal. The following four issues have been raised for the determination of the appeal:

“(a) Had the respondent sufficient funds in his account as at 11/7/84 to meet his cheque for N15,000.00. If he did, the appellant will be liable for returning the cheque unpaid. But if he had no sufficient funds in his account, then the Appellant will not be liable for returning respondent’s cheque unpaid.

(b) When was the respondent’s A.C.B. draft for N8,000 Exhibit 51 cleared at the Central Bank in Benin City

(c) Was it necessary in accordance with banking practice and procedure to clear drafts drawn on other banks before crediting the proceeds to customer’s accounts

(d) Was the Court of Appeal correct in their findings having regard to the very serious conflicting findings by the Justices of the Court of Appeal in this case.”

Respondent’s issue 1 is the same as appellant’s issue 2. In issues 2 and 3 learned counsel for the respondent questioned whether Exhibit 51A was rightly admitted in evidence by the High Court and whether an appeal against such admission could lie when there was no ground of appeal against it in the lower court. Before I proceed I would like to explain that the learned counsel for the appellant did not question the admissibility of Exhibit 51A in the issues raised against the grounds of appeal.

Learned counsel for the appellant, Mr. Ebohon, argued all issues raised by the appellant together. It is however very clear that the main issue, in this appeal, is issue 1. The simple and straight forward question is whether at the time the cheque of N15,000.00 was presented to the appellant’s branch at Asaba for payment the respondent had sufficient funds in his account to meet the amount. If on the 11th July, 1984, when the cheque was presented the amount standing as balance in favour of the respondent, in his account, was not sufficient to meet the sum of N15,000.00 to be cashed, the appellant would not be liable. It is the case of the respondent that at that time he had enough funds to meet the cheque.

In order to give an accurate picture of the case of the respondent it is relevant to reproduce an extract from the evidence the respondent gave before the trial High Court. In the testimony, the respondent explained how he deposited up to N19,671.24 in his account by the 10th of July, 1984. He described how he made his lodgments in the following words:

“As at 28/6/84 I had in my current account with the defendant bank the sum of N9,038.24. Between 2/7/84 and 10/7/84 I made many lodgments.

I can recognise the bank teller with which I made lodgments of N191: marked Exhibit 14, N1700 bank draft: marked Exhibit 15, N8000 bank draft A.C.B. Asaba marked Exhibit 16.