Highgrade Maritime Services Limited V. First Bank Of Nigeria Limited (1991)

LawGlobal-Hub Lead Judgment Report

B. WALI, J.S.C. 

On the 22nd October, 1990 I dismissed this appeal and indicated to give my reasons for doing so today. By a Writ of Summons filed in the High Court of the Port Harcourt Judicial Division on 17th October, 1983, the plaintiff, Highrade Maritime Services Limited, claimed against the defendant, First Bank of Nigeria Limited, situate at Aba Road Port Harcourt, as follows:-

“The plaintiffs claim against the defendant is the total sum of N1,568,966.35 (One million, five hundred and sixty-eight thousand, nine hundred and sixty-six naira, thirty-five kobo) being money had and received by the defendant to the use of the plaintiff at Port Harcourt within the jurisdiction of this Honourable Court in the course of the defendant’s business as a banker and in respect of the plaintiff’s Current Account No.02025984 with the defendant’s branch at Aba Road, Port Harcourt, common or popularly known as the Airport Branch.

The plaintiff has closed the said account with the defendant and demanded the aforesaid sum of money being the balance standing to the plaintiff’s credit in the said account.

The defendant has since failed and still refused to comply with the plaintiff’s demand aforesaid.

WHEREOF the plaintiff has suffered damage and claims against the defendant the said debt or liquidated sum of N1,568,966.35 (One million, five hundred and sixty-eight thousand, nine hundred and sixty-six naira, thirty-five kobo) being money had and received by the defendant to the use of the plaintiff.”

The defendant denied the plaintiff’s claim. Pleadings were ordered, filed and exchanged and issues joined on material facts. At the end of the hearing of the case, the learned trial Judge, Fiberesima, J., delivered a reserved judgment in which he concluded –

“From the evidence before me and particularly from the conscious admissions by the defence of receiving the cheque and proceeds and of exhausting the cheque and of having the exhausted cheque in its custody, I hold that as between the plaintiff and its bankers the amount is recoverable by the plaintiff as money paid by plaintiff. Accordingly there must be judgment for the plaintiff for the amount claimed.

The defendant is to pay to the plaintiff the sum of N1,568,966.35 (One million five hundred’ and sixty-eight thousand, nine hundred and sixty-six naira, thirty-five kobo) being money had and received to the use of the plaintiff.”

The defendant, aggrieved by the:-judgment, appealed against it to the Court of Appeal, Enugu Division. In a unanimous judgment of that court delivered by Kolawole, J.C.A., it allowed the appeal and concluded-

“It was established beyond doubt that the appellant did not receive credit for the sum of N1,568,946.35 for the reasons which I have earlier given. The result is that this appeal succeeds and the judgment of Fiberesima, J. dated 13 September, 1984 is set aside. In its place judgment is hereby entered for the respondent in the sum of N19.50 representing the balance standing to its credit with the appellant as at 16th August, 1983. The appellant is awarded costs of N1,000.00 in the lower court and N500.00 in this court inclusive of N207.00 out of pocket expenses.”

The plaintiff has now appealed to this Court.

The facts involved in this case have been admirably and adequately stated in the lead judgment of the Court of Appeal by Kolawole, J.C.A. They are as follows:-

“On 10th of August, 1983 the respondent opened a current account with the appellant with a sum of N100.00. On 11th August, 1983 the respondent deposited a First Bank of Nigeria cheque Ikeja Branch for the sum of N1,568,946.35 into its current account at the appellant’s Airport Branch Port Harcourt. The cheque was said to have been drawn by Parkinson Nigeria Limited on the Ikeja Branch of the First Bank of Nigeria limited. The respondent’s account was credited with that amount the same day but as it is usual in banking practice, the respondent’s account was debited with the same amount because the amount was very heavy. The cheque was then sent to Ikeja for collection. This was to ascertain whether the cheque was a genuine cheque or not. The response from Ikeja that payment had been effected was sent in an unusual way of a mere paper transaction, whereas the usual practice whenever an amount was over N2,000.00 was that the message conveying payment would be by coded telegram. Because of the unusual manner in which the Ikeja Branch advised payment, the appellant suspected fraud and they sent a telegram to the Ikeja Branch for confirmation whether Exhibits 12 and 12A which conveyed that the cheque had been cleared originated from them. They also sent a letter and Ikeja Branch replied by Exhibit 13 on October 12, 1983 that Exhibits 12 and 12A were not from them and that the signature on them was forged.