Diamond Bank Limited V. General Securities and Finance Company Ltd (2008)

LawGlobal-Hub Lead Judgment Report

MONICA BOLNA’AN DONGBAN-MENSEM, JP+, J.C.A.

The account of the facts giving rise to this interesting appeal is hereby reproduced verbatim as presented in the Appellant’s brief of argument: –

“1.1. This is an appeal against the ruling of the High Court of Lagos State, Lagos Division in Suit No. M/427/2002.

1.2. The Appellant in this action is a Defendant in an action in The Chancery Division of the High Court of England with No. HC0100699 between LUIZ VICENTE BARROS JR. AND ORS VS MAC DANIELS LIMITED AND ORS, From which tracing and freezing orders were made to Freeze the account of the Plaintiff herein pending the Determination of the suit in England.

1.3. By an originating summons dated 24th June, 2002 and filed on 26th June, 2002 at the High Court of Lagos Registry, the Plaintiff/Respondents pursuant to an Assertion that the Defendant froze its accounts with Numbers 026-2010013837, 018-2010005273 and 018-2010005285, held in the Defendant Bank, prayed the court for the determination of the following questions:

1) Whether the order/judgment of a court of sovereign Foreign jurisdiction, namely the High Court of Justice, Chancery Division of London, England directing the defendant to these proceedings to freeze and preserve monies held by the Defendant on the plaintiffs Account in Account Nos. 026-2010013837, 018-2010005273 and 018-2010005285 and thereby denying the plaintiff operation of the said Account and by reason thereof denying the plaintiff benefit of the use of its monies, is valid, proper, legal and therefore enforceable in Nigeria and under Nigeria Law, when, the said order and judgment has not been registered in Nigeria in the manner prescribed by the foreign judgment (Reciprocal Enforcement Act) Cap 152, Laws of the Federation of Nigeria, 1990.

2) Whether the Judgment/Order of the High Court of Justice, Chancery Division, London, England directing the Defendant herein as is alleged to freeze and/or preserve monies held by the Defendant on the plaintiff’s accounts in Account Nos. 026-2010013837, 018-2010005273 and 018-2010005285 is a violation of the plaintiff’s rights under section 36 of the constitution of the Federal Republic of Nigeria 1999.

3) In the event that the answer to 2 above is in the affirmative, whether, the said judgment/order of the High Court of Justice, Chancery Division, London, England can therefore be enforced against the plaintiff.

1.4. The plaintiff further sought the following reliefs and others:

1) An order compelling the Defendant to unfreeze the Plaintiffs account and allowing the plaintiff to Operate in Account Nos. 026-2010013837; 018-2010005273 and 018-2010005285 normally without let or hindrance.

2) An order restraining the Defendant, its officers, Agents or privies from further freezing and or precluding plaintiff from operating its account on the basis of foreign judgments and/or orders not registered in the manner prescribed by law.

3.) An order restraining the Defendant, its officers, Agents or privies from further releasing information pertaining to the Plaintiff’s account to anybody whatsoever, without plaintiff’s consent, on the basis of directives and or orders not registered in the manner prescribed by law.

4) Damages in the sum of N2,000,000. 00 (Two Million Naira) only, being damages incurred by the plaintiff from the action of the defendant in precluding it from operating its account used for its business as a financial institution.

1.5. The matter came before the Court for the first time on 3 July, 2002, both parties were represented and the suit was further adjourned to 9 July, 2002 for hearing of the Originating process.