Ozde Distilleries Limited V. Diamond Bank Plc. (2013)

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 Adebiyi J. of the High Court of Lagos State sitting at the Commercial Division, Tafawa Balewa Square, Lagos delivered on 31/1/08 in Suit No. LD/2483/2001 dismissing the claims of the Appellant and granting some of the reliefs sought in the Counter-Claim of the Respondent.

The Appellant who was the Claimant in the Court below by its Statement of Claim dated 19/10/01 approached the Court for the following reliefs:-

i. A declaration that by the agreement of the parties and the payment by the Plaintiff of the sum of N20, 238,892.40, it has discharged all its debt obligation to the Defendant.

ii. That detention of the Plaintiff’s security and refusal to release the same to the Plaintiff is unlawful.

iii. That the Plaintiff is entitled to various original receipts for all the monies said to have been paid on behalf of the Plaintiff by the Defendant, whether they be official government revenue collector’s receipt or receipts issued by other people for payment debited to the Plaintiff’s account, and copies of the following documents;

a. Overdraft facility agreement

b. The Plaintiff’s copy of the Floating charge over the Plaintiff’s assets.

c. Original Revenue Collector’s receipt for payment of the statutory fees such as stamp duties, registration fees for the debenture as well as receipt from the solicitor instructed by the bank.

iv. An order of Court directing the Defendant to release the said documents mentioned above to the Plaintiff forthwith.

v. An order of the Court directing the Defendant to pay the Plaintiff the sum of N3,000,000.00 (Three million naira) being general damages for fiddling with the Plaintiff’s account and unlawfully withholding the Plaintiff’s security thereby denying the Plaintiff the opportunity of using it for other business.

vi. An order of perpetual injunction restraining the Defendant whether by their servants, agents, privies and cohorts from foreclosing of the Plaintiff’s security, advertising, offering for sale or trespassing on the Plaintiff’s assets pledged as security for the loan, or in anyway dealing with the said security.

In its Statement of Defence/Counter-Claim filed on 23/1/02, the Respondent averred that the said Claimant is indebted to it in the sum of N7, 721,241.25 as at October 2001 being the outstanding balance due to it on the credit/overdraft facility granted to the Claimant and that the said Claimant has failed and or refused to pay despite repeated demands. The Respondent as Defendant Counter-Claimed as follows:-

a. N7,721,241.25 (seven Million, five hundred and twenty-one thousand, two hundred and forty-one naira, twenty-five kobo)