Nomsal Marketing and Supplies Ltd. & Anor V. Joasy Pen Enterprises Ltd. (2005)

LawGlobal-Hub Lead Judgment Report

AMAIZU, J.C.A.

The plaintiff is a company registered in Nigeria. It carries on the business of transporter, hiring of Barges/Tugs supplies and general contractor.

It has its head office at No.11 Eboh Road, Okunmagba Layout, Warri.

By an agreement dated 29/5/96, the plaintiff agreed to hire its tugboat called “Praise Jah” to the 1st defendant. The consideration was N28, 000.00 daily, payable in advance. The agreement was to last from 1st of June 1996 to 5/7/96, a period of 35 days. The first defendant made a deposit of N350, 000.00. At the expiry of the agreement, the plaintiff on 7/7/96 issued its invoice No. 0133 to the 1st defendant demanding the balance of N630, 000.00.

The 2nd defendant who is the Chairman and the Managing Director of the 1sl defendant and the 1st defendant made a number of unfulfilled promises to pay the balance. The plaintiff filed a writ of summons against the defendants; it also obtained leave of the lower court to place the suit on the undefended list.

The claim against the defendants was jointly and severally for:-

1) the sum of N630, 000 (six hundred and thirty thousand naira) only being the amount from the defendants to the plaintiff in respect of hire/charter agreement entered into by the parties.

Interest at the rate of 10% per annum on the judgment debt until same is finally liquidated.

The defendants did not file an intention to defend the case.

They however brought a motion on notice pursuant to section 251(1)(G) of the 1999 Constitution and Order 47 Rule 1 of the High Court (Civil Procedure) Rules 1998 Delta state of Nigeria praying the court by way of preliminary objection for:-

An order striking out/dismissing this suit in its entirety for want of jurisdiction.

The grounds of the objection are:-

1) By the provisions of the Admiralty Jurisdiction Decree No. 59 of 1991, jurisdiction in Admiralty matters are vested exclusively on the Federal High Court.

(2) By the provisions of Section 251(1)(g) of the Constitution of the Federal Republic of Nigeria 1999, Admiralty jurisdiction is vested exclusively on the Federal High Court.