Oroji International Nigeria Limited & Anor V. Unity Bank Plc (2013)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

TUNDE O. AWOTOYE, J.C.A. (Delivering the Leading Judgment)

This is the judgment in the appeal filed by the appellants vide two Notices of appeal dated 31/3/2008 and 25/6/2008 against the judgment of Sokoto State High Court delivered on 31/3/2008. This appeal is based on the further amended notice of appeal deemed filed on the 26/7/2012.

The plaintiff (now the respondent) had instituted an action against the defendants (now appellants) claiming as follows:

“CLAIM: The plaintiff claim is for the sum of thirty million and forty nine thousand three hundred and sixty one Naira, thirty-three Kobo (N30,049,361.33k) being the outstanding debt balance on the defendant’s accounts with the plaintiff as at 16th November 2007 arising from loan and overdraft facilities advanced but the plaintiff to the defendants the same being overdue and unpaid despite repeated demands, plus interest at rate of 35% until judgment and thereafter at 10% until liquidation and the cost of the action.”

The action was brought under the Undefended List Procedure as provided for under ORDER 22 of the Sokoto State High Court Civil Procedure Rules.

On being served with the court processes the defendants filed conditional appearance and later filed notice of preliminary objection challenging the territorial jurisdiction of the trial court to entertain the suit and the locus standi of the plaintiff.

The learned trial Chief Judge after hearing the parties on the preliminary objection dismissed the objection and proceeded to give judgment in favour of the plaintiff interalia thus;

“The only defence put up by the 2nd defendant to the averments of the plaintiff bank is that they do not know the plaintiff. None of the specific averments of the plaintiff as stated earlier, no the exhibits to the supporting affidavit of the plaintiff were challenged or controverted by defendant. In view of the specific averments made which have supporting documents to prove the indebtedness of the 2nd defendant it is no defense for the 2nd defendant to simply state that he does not know the defendant. It is the law that to warrant this suit being transferred to the general cause list a defendant has to show by affidavit evidence a defense on the merit. See 022 R3(1) HCR 1993 see also Ikpong Anor V Obong 2007 22 WRN pg 84. As no such defense has been shown by the 2 defendants this suit has to be tried on the undefended list as filed by the plaintiff and judgment given upon it. Accordingly, judgment is hereby given in favour of the plaintiff Bank against the defendant severally in the sum of N30,049,361.33k plus interest at 35% until judgment and thereafter at 10% until liquidation. Costs of the suit is awarded at N87,520.00 against the defendants.”

The defendants being aggrieved against the decision filed a further amended notice of appeal containing 6 grounds of appeal. For clarity’s sake, I shall quote the grounds hereunder (excluding the particulars).

“GROUND 1

The learned trial Chief Judge erred in law by assuming jurisdiction when the High Court of Justice, Sokoto State lacked the territorial jurisdiction to entertain the Respondent’s suit.

GROUND 2

Learned trial Chief Judge erred in law in failing to strike out the suit for incompetence when the Plaintiff apparently lacked locus standi to bring the action.

GROUND 3