Katol Investment Limted V. Uacn Property Development Company PLC (2014)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

CHINWE EUGENIA IYIZOBA, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the Judgment of Okuwobi J. of the High Court of Lagos State in Suit No. ID/2576/2000 delivered on the 8th day of May, 2009 granting the Respondent inter alia an Order of possession of the property located at No 1. Sobo Arobiodu Street, G.R.A. Ikeja, Lagos.

By a Writ of Summons filed on the 18th day of October, 2000 and a Further Amended Statement of Claim dated 15th of December, 2003, the Respondent claimed possession of the said property, arrears of rent and mesne profits.

The Respondent’s case is that the Appellant formerly occupied the property, the subject matter of this appeal by virtue of 3 year lease granted by the UAC of Nigeria Plc which was later extended to 10 years. The Respondent averred in its pleadings that it was the successor to the assets and liabilities of the investment properties of UAC of Nigeria Plc pursuant to a Scheme of Arrangement sanctioned by an Order of the Federal High Court dated 16th February 1998 and also a subsidiary of UACN.

The Respondent further averred that the Appellant immediately developed the habit of neglecting to pay its rent after the expiration of the initial payment made by it and went ahead to sub let the property to different companies without paying the rent accruable to the Respondent.

The Respondent averred that its predecessor in title, UAC of Nigeria had also instituted Suit No. ID/1268/98: UAC of Nig Plc v. Katol Invest Ltd against the Appellant for arrears of rent wherein Adeyenka J entered judgment for the Respondent. It was as a result of the Appellant’s persistent refusal to pay its rent that the Respondent authorized its Solicitors to issue necessary notices for the recovery of the premises from the Appellant.

In its Further Amended Statement of Defence and Counter-Claim dated 15th June 2006, the Appellant contended that shortly after the agreement between it and the Respondent, the Appellant realized that the property was deserving of reconstruction due to its dilapidated state and that the Appellant subsequently sought and obtained the approval of UAC of Nigeria and constructed a large storey building on the premises at the cost of N120 million.

The case of the Appellant therefore is that UAC of Nigeria permitted it to expend money for the renovation of the property and rather than refund the sum or convert same to rent, the Respondent filed action to recover possession from the Appellant.

At the conclusion of the trial, the Learned Trial Judge entered judgment in favour of the Respondent in the following terms:-

i. Order of possession of the premises at No. 1 Sobo Arobiodu Street, GRA, Ikeja to the Claimant, which possession shall be yielded 60 days from the day of Judgment.

ii. Judgment in the sum of N1,620, 000.00 (One Million, Six Hundred and Twenty Thousand Naira) being arrears of rent owed to the Claimant by the Defendant from 1st June, 1998 to 31st May, 2000 with post judgment interest at the rate of 6% per annum until liquidation.

iii. Mesne profit at the rate of N810, 000.00 from 1st June, 2000 until possession is given up.

iv. Dismissal of the Counter Claim for want of proof.

v. Dismissal of the alternative claim in the Counter Claim.