Chiefield Nigeria Limited V. Orient Bank of Nigeria Plc (2002)

LawGlobal-Hub Lead Judgment Report

GALADIMA, J.C.A.

This is an appeal by the defendant against the ruling of Sahid (J.) of the Lagos State High Court in which judgment was given in favour of the plaintiff (now the respondent) on 11/2/1998. The learned trial Judge had upon the application by way of a specially endorsed writ, entered judgment in the sum of N346,096.87 with interest on the ground that the appellant had no triable defence to the action commenced as a specially endorsed writ.

The claim of the respondent against the appellant was in the following terms:-

The plaintiff’s claim against the defendant is for the sum of N346,096.87 (Three hundred and forty-six thousand and ninety-six naira, eighty-seven kobo) being the principal sum and accumulated interest combined in respect of the defendant’s current account No. 020200254 which was overdrawn to the tune of N109,000.00, in November, 1989 when the plaintiff remitted total sum of $64,000.00 (sixty-four thousand US dollars) in two instalments at the defendant’s instructions to Coxiam Trading Company Limited, Taipei Taiwan under a bill for collection.

The defendant has since failed, refused and/or neglected to repay this outstanding amount to the plaintiff despite repeated demands.

The plaintiff further claims interest on the above sum at the rate of 21% per annum with effect from the 1st day of March, 1994 till date of judgment and thereafter at the rate of 6% till the amount is fully liquidated.

The writ of summons was accompanied by a statement of claim in which the respondent amplified the facts upon which the claims against the appellant were sought. The appellant having been served entered an unconditional appearance on 12/5/94 but did not file any statement of defence. Consequently upon the entry of appearance, the respondent, pursuant to the provisions of Order 10 rule 1(a) of the High Court of Lagos State (Civil Procedure) Rules of 1973 (then applicable) brought a summons on notice with a number of exhibits seeking for:

An order entering judgment in this action against the defendant/respondent in the sum of N346,096.87 (Three hundred and forty-six thousand and ninety-six naira, eighty-seven kobo) with interest as claimed in the writ of summons and statement of claim.

The appellant in response to the application for judgment then filed a counter-affidavit with some exhibits and a further counter affidavit.

The application was argued by counsel to both sides. The learned trial Judge in a considered ruling entered judgment in favour of the respondent as per its writ of summons and statement of claim.

Dissatisfied with the decision, the appellant appealed against it filing notice of appeal of three grounds and distilled a sole issue for determination thus:

Whether on the facts deposed to in the counter-affidavit and further counter-affidavit together with the exhibits attached thereto, the learned trial Judge was right in holding that the defendant/appellant has no defence to the plaintiff’s claim to entitle it to defend the action?.

The respondent on its part also formulated one issue for determination simply thus:

Whether the learned trial Judge was right from the totality of evidence available, in entering judgment in favour of the plaintiff/respondent under the provisions of Order 10 (now Order 11) rule 1(a) of the High Court of Lagos State (Civil Procedure) Rules, 1973.