Dr. N. E. Okoye & Anor. V. Centre Point Merchant Bank Limited (2008)

LAWGLOBAL HUB Lead Judgment Report

F.F. TABAI, J.S.C

This action was commenced at the Onitsha Judicial Division of the High Court of Anambra State on the 6/8/98, when the Writ of Summons was issued. The appellants herein were the plaintiffs. The respondent herein was the defendant. The six paragraph claim runs thus:-

Claim

The plaintiffs are customers of the defendant Merchant Bank which carries on merchant banking business in big cities of Nigeria including Onitsha.

  1. By confirmation notice given to the plaintiffs by the defendant, the defendant is indebted to the plaintiffs to the tune of N2,385,716.75 (Two Million, Three Hundred and Eighty Five Thousand Seven Hundred and Sixteen Naira, Seventy Five kobo).
  2. The defendant merchant bank has failed to pay interest as agreed or at all.
  3. The interest rate which is fixed at the rate of 15% per annum is usually withheld by the defendant and was only paid twice in recent years.
  4. Despite repeated demands by the plaintiffs for the defendant to pay the entire sum due and payable to them, the defendant has failed or neglected to pay same over to the plaintiffs.
  5. Wherefore the plaintiffs claims as follows:

(a) The sum of N2,385,716.75 being the principal sum due to the plaintiffs.

(b) Interest at the rate of 15% per annum on the sum of N2,385.716.75 from 24th day of March, 1995, until the sum owed is fully liquidated.”

The claim is supported by a 10 paragraph affidavit deposed to by the 1st plaintiff/appellant. The suit was entered in the Undefended List.

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When the matter came up on the 17/12/98, learned counsel for the plaintiffs informed the court that the defendant had been served on the 18/11/98 and that there was no notice of intention to defend. Learned counsel therefore asked for judgment.

In reaction, the learned trial Judge, K.K. Keazor, J., said:-

“The suit is brought under the Undefended List Procedure. The defendant was served on 18/11/98. The matter was set down for hearing today. This was well over the prescribed 5 days before hearing after service. The defendant did not file notice of intention to defend. There will be judgment for the plaintiffs as per their claim for:-

(a) The sum of N2,385,716.75 being the principal sum; and

(b) Interest at the rate of 15% per annum in the said sum of N2,385,716.75k until the sum is fully liquidated.”

Learned counsel for the plaintiff asked for N2,000.00 costs and the court awarded same. The above represents the judgment of the trial court.

The defendant was aggrieved by the judgment and went on appeal to the court below. By its judgment on the 21/12/2001, the appeal was allowed. The plaintiffs were aggrieved by the judgment and have come on appeal to this court. In the Notice of Appeal dated 16/1/2002 and filed on the 4/2/2002, the appellants raised seven grounds of appeal.

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