National Insurance Commission V. Mrs. Modupe Oyepero Oyefesobi & Ors (2013)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

IBRAHIM MOHAMMED MUSA SAULAWA, J.C.A. (Delivering the Leading Judgment)

The instant appeal is against the ruling of the Federal High Court, Lagos Judicial Division, which was delivered on July 6, 2008 in Suit No. NRT/L/06/2006. By the ruling in question, the court below, Coram C. E. Archibong, J; granted a Garnishee order absolute against the 1st & 2nd Garnishees, being the present Appellant and the 3rd Respondent, respectively. Being dissatisfied with the said ruling, the Appellant filed the notice of appeal thereof on June 2, 2010 in the court below, urging on this court, inter alia, to set aside the garnishee order absolute.

BACKGROUND FACTS:

On May 12, 2005, Dr. Segun Oladele Oyefesobi filed an originating application against the 2nd Respondent at the Investments And Securities Tribunal, sitting in Abuja Judicial Division, seeking various declaratory and injunctive reliefs, to wit:

i. A declaration that by virtue of Memorandum of Understanding dated May 18, 2000 between the Applicant and the Respondent the Applicant is entitled to 24,062,500 units of shares as right due to him under the November/December 1999 rights issues.

ii. A declaration that the letter dated February 6, 2003 written by the 1st Respondent to the Applicant limiting the shareholding of the Applicant in the shares, is null and void and of no legal effects.

iii. A declaration that the Applicant is entitled to voting rights and privileged as shares holders of 35,678,186 units of shares in Annual General Meeting any meeting of the Respondent company.

iv. An order directing the Respondent to issue and deliver the share certificate in respect of the 24,062,500 share being right due to the Applicant under the November/December 1999 right issue as contained in the Memorandum of Understanding dated May 18,2000.

v. The sum of N34,650,000 being the value of the 24,062,500 units of share due to the Applicant in the Respondent company at the current market rate of N1.44k per share.

vi. And for such further order or other as the Honourable Tribunal might deem fit to make in the circumstances of this case.

Upon the demise thereof, the complainant’s wife, Mrs. Modupe Oyepero Oyefesobi (the 1st Respondent), was substituted as the Applicant. The suit proceeded to trial.

On July 26, 2006, the Tribunal delivered judgment in favour of the 1st Respondent for the sum of N34,65,000.00, and interest at the rate of 10% per annum from the date of judgment.

On August 15, 2006, the 1st Respondent filed a motion exparte (NRT/L/06/2006) in the Federal High Court, Lagos Judicial Division, seeking the following reliefs:

1. An order of the Honourable Court granting leave to the judgment Creditor/Applicant to register in this Honourable Court the Certificate of judgment dated 15th day of August, 2006 issued by the Investments and Securities Tribunal, Abuja.
2. An order granting leave to the judgment Creditor/Applicant to issue Writ of Execution against the judgment Debtor.
3. An order of the Honourable Court directing the Commissioner of Police Lagos State, the Deputies, Assistances and all other officers under them to assist the judgment Creditor/Applicant and the Deputy Sheriff of the Honourable Court in the Execution of the judgment of the Investments and Securities Tribunal, Abuja dated the 26th day of July, 2006.

That application was indeed granted on November 21, 2006. Exactly one year thereafter, specifically on November 2, 2007, the 1st Respondent filed an exparte application in the court below seeking Garnishee Order Nisi attaching the money belonging to the 2nd Respondent with the Appellant and 3rd Respondent. The exparte application for a Garnishee Order Nisi was granted by the lower court on November 29, 2007. Consequent upon which, the lower court granted a Garnishee Order absolute on July 21, 2008, to the following effect: