Oceanic Bank International Plc V. Corporeti Support Services Limited & Anor (2011)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

HELEN MORONKEJI OGUNWUMIJU, J.C.A (Delivering the Leading Judgment)

This is an interlocutory appeal against the ruling of Hon. Justice K.A. Jose of the High Court of Lagos State delivered on the 28th day of March, 2011. The facts which led to this appeal are as follows:

The Appellant being the claimant at the trial filed a claim for debt or liquidated money demand in the following terms.

(a) The sum of N426, 718,222.57 (Four Hundred and Twenty six Million Seen Hundred and Eighteen Thousand Two Hundred and Twenty two Naira Fifty Seven Kobo) from the Defendants jointly and severally being the sum outstanding as at 31st December 2009 in respect of the overdraft facilities granted by the claimants to the 1st defendant and guaranteed by the 2nd defendant.

(b) Interest on the above stated sum at the rate 25% per annum until judgment and 7% per annum thereafter.

(c) cost of the action.

The Respondents herein being Defendants at the trial court filed their statement of defence. The Respondents later filed a motion on notice to amend their statement of defence which included a counter-claim.

In the ruling appealed against, the trial court granted the respondent the prayer to file additional list of witness to include one Babajide Ajisafe a banking/Financial consultant and to amend the statement of defence to include a counter claim.

The gist of the Respondents’ defence is as contained in paragraphs 11 and 12 of the amended Statement of Defence and counter-claim. They are set out below:

“1. The defendants would contend at the trial that the combination of the wrong and illegal interest rates charged by the claimant as well as the application of very high exchange rates at various times by the claimant is what resulted in the ballooned sum of money the claimant alleges is owed by the defendants jointly and severally.

2. The defendants are prepared for the court to appoint an independent firm of chartered Accountants to reconcile the 1st defendants Account with the claimant to arrive at the exact sum owed to the claimant if any the defendants”.

In paragraphs 26 of the amended statement of defence and counter-claim, the Respondents counter-claimed as follows:

“The defendants counter-claim against the claimant for the sum of N157,383,909.87 (One Hundred and Fifty Seven million, Three Hundred and Eighty Three Thousand, Nine Hundred and Nine Naira, Eighty Seven Kobo) plus interest at the Prevailing Treasury Bills Rate and a penal charge of 2% per annum from August 31st 2010 to the date of [payment by the Bank in line with the sub-committee on Ethics and professionalism’s practice. The above sum represents the total of the excess, illegal and over charges debited to the 1st defendants account kept with the claimant”.

The Appellant had filed a motion for summary judgment pursuant to Order 11 Rule 1 of the Lagos State High Court Procedure Rules. The motion was moved before the original statement of defence and the motion for amendment of defence and counter-claim was filed. The Appellant moved the motion for summary judgment and the trial court held in respect of that application as follows:

“In my view these are issues that cannot be determined summarily as the court cannot at this stage determine whether or not wrong rates of interest that were applied and the court will not be in a position to know the exact indebtedness if any of the defendants, it would be necessary to have this matter go to trial where both sides can fully ventilate the averments in the statement of pleadings”