Chief Saka Owoade V. Texaco Africa Ltd (1973)

LawGlobal-Hub Lead Judgment Report

FATAYI-WILLIAMS, J.S.C

In suit No. MI/175/67 filed in the Ibadan Magistrates’ court, the plaintiff claimed against the defendants “the sum of one hundred and fifty pounds (150pounds) being two years’ rent for the periods 1966 and 1967 inclusive in respect of a piece of land situate lying and being at Igbo Igbale, Isale-Bode, Ibadan, which the defendants hold from the plaintiff under a deed of lease dated 17th day of May, 1960 made at Ibadan between the plaintiff and the defendants and registered as No, 17 at page 17 in volume 373 of the Lands Registry at Ibadan.”

The testimony of the plaintiff in support of the claim may be summarised as follows. The plaintiff agreed to lease a piece of land at Ibadan for a term of 10 years to the defendants in 1960 for the erection of a petrol station. Pursuant to the said agreement the parties, on 17th May, 1960, executed the deed of lease (Ex.A). The agreed rent for the land was 75pounds per annum and the defendants paid him the sum of 300pounds being four years rent in advance at the execution of the lease. Another sum of 75pounds was paid as rent for the year 1965. The defendants, in accordance with the term of the lease duly erected a petrol station on the land by burying a petrol tank in the land and “making drive ins and some concrete cement floor.” They also installed two petrol pumps.

Sometime in 1965, the defendants removed the two petrol pumps leaving all the other things which they had put on the land.

When the rent for year 1966 was due but was not paid, the plaintiff instructed his solicitor to demand the rent from the defendants. In reply, the plaintiff received from the defendants’ solicitor the letter dated 26th March, 1966 (Ex. ‘B’) the contents of which read-

“Your letter addressed to Texaco Africa Limited demanding payment of 75pounds for rent due under a lease made by Chief Saka Owoade to Texaco Africa Limited registered as 17/17/363 has been handed to us with instructions to reply to it.

We are instructed to inform you that under the terms of clause 4(c) of the lease; Chief Saka Owoade was given three months’ notice of determination of the lease with effect from 31st July, 1965.

The date of the notice was the 17th of April, 1965. It was sent to Chief Saka Owoade by registered post as provided by the property and Conveyancing Law.

Rent has been paid up to the 28th of February, 1966. No further rent is due.”The plaintiff denied receiving any notice of the termination of the lease as stated in the letter (Ex. ‘B’). He admitted, however, that he had not seen any of the Texaco people on the land since they removed some of their properties in 1965.

In their defence, the defendants admitted leasing the land from the plaintiff. They also admitted that all the rents were payable in advance and that they had paid rent up to February, 1966.

With respect to the termination of the lease Austin Eumuoye (2nd D/W) testified further as follows:-“About two years ago, we instructed our solicitors Messrs. Okubadejo and Grant to write to the plaintiff that we would be quiting the premises…..I saw the copy of the letter written by our Solicitors.”

He then identified the copy of the letter (Ex. ‘C’) already tendered by the Solicitors’ Clerk (1st D/W). The letter reads -“Dear Sir,

Texaco Africa Limited, Indenture of Lease dated the 17th day of May, 1960 registered as No. 17 at page 17 in Volume 373 of the Lands Registry at Ibadan.

In accordance with the terms of Clause 4(c) of the above lease, we have been instructed by the above named Company in our capacity as its agents to give you “three months notice of the Company’s intention to determine the lease with effect from the 31st day of July, 1965.