Jammal Steel Structures Ltd V. African Continental Bank Ltd (1973)

LawGlobal-Hub Lead Judgment Report

O. ELIAS, C.J.N 

This is an appeal from the ruling of Adefarasin, J., in Suit No. LD/970/73 given in the High Court of Lagos State on October 25, 1973, in which he held, inter alia, that notwithstanding the provisions of the Federal Revenue Court Decree 1973, (in particular Section 7 (1) (b) (iii) thereof) the High Court of Lagos State has jurisdiction in the cause or matter the subject-matter of this appeal. The plaintiffs/respondents in their writ of summons dated September 17, 1973, claimed inter alia the sum of N641,328.39 (Six Hundred and Forty One Thousand, Three Hundred and Twenty-eight Naira and Thirty-Nine kobo) from the defendants/appellants, being the balance due to the plaintiffs for an over-draft granted by the plaintiffs to the defendants at their Idumota branch, Lagos, in the normal course of their business as bankers to the defendants and for money paid by the plaintiffs to the defendants as banker at the latter’s request, which said sum the defendants have refused and/or neglected to pay in spite of repeated demands.

When the case first came before the High Court of Lagos State on October 15, 1973, Chief F.R.A. Williams, leading counsel for the defendants/appellants sought the leave of the court to argue that the said court has no jurisdiction to deal with the cause or matter having regard to the provisions of the Federal Revenue Court Decree 1973. After hearing arguments from both parties on October 22nd, 1973 on the issue of jurisdiction, the learned Judge gave the ruling three days later as already stated. Dissatisfied with the ruling, the defendants/appellants applied for leave to appeal on the same day, and the learned trial Judge, after hearing arguments of counsel for both sides, granted leave to the appellants to appeal against the ruling.

The two grounds of appeal argued before us are as follows:

“The learned trial Judge erred in law in failing to observe that the plaintiffs’ action being a claim connected with or pertaining to their business as bankers it clearly falls within the jurisdiction conferred on the Federal Revenue Court under Section 7(1) (b) (iii) of the Federal Revenue Court Decree 1973 Number 13. Accordingly, the High Court of Lagos State has no jurisdiction to entertain the claim.

2.  The learned trial Judge erred in law in assuming that the intention of the Federal Revenue Court Decree is to confer on the said court jurisdiction in civil causes and matters in respect of the matters specified under paragraphs (a), (b), (c) and (d) of subsection (1) of Section 7 of the said Decree only in cases where they relate to the revenue of the Government of the Federation

Particulars of Error

(i)    There is no such limitation on the jurisdiction of the Federal Revenue Court except in respect of the matters specified under paragraphs (a) of Section 7 (1);

(ii)   Section 33 of the Federal Revenue Court makes it clear that the jurisdiction of the Federal Revenue Court is not confined to ‘revenue causes and matters as defined in subsection (2) of the said Section 33.”

In order to deal with the important subject-matter of the appeal fairly expeditiously, we granted the application by the counsel for the defendants/ appellants that the appeal be heard and determined on the papers filed in support of the application. It is agreed that the substance of the appeal requires a determination of the scope of the jurisdiction which is vested in the Federal Revenue Court by Section 7(1), (a), (b), (c) and (d) of the Decree. The relevant provisions as Section 7(1) are as follows:

“The Federal Revenue Court shall have and exercise jurisdiction in civil causes and matters-

(a)   relating to the revenue of the Government of the Federation in which the said Government or any organ thereof or a person suing or being sued on behalf of the said Government is a party;

(b)   connected with or pertaining to-

(i)    the taxation of companies and of other bodies established or carrying on business in Nigeria and all other persons subject to Federal taxation,