Peenok Investments Ltd V. Hotel Presidential Ltd (1982)

LawGlobal-Hub Lead Judgment Report

A. G. IRIKEFE, J.S.C. 

In the Anambra State High Court, the appellant, a limited liability company, commenced this action against the respondent, also a limited liability company, and claimed as follows:-

“The plaintiff’s claim against the defendant is for N342,000 being the amount due to the plaintiff from the defendant for the use and occupation by the defendant of the plaintiff’s property known as and called PLOT A/42 DIOBU G.R.A., PORT HARCOURT for the period 24th March, 1972 to 23rd March, 1977 inclusive, and for mesne profits until judgment at the following rates:

(a)  24th March, 1972 to 23rd March, 1975 at the rate of N6,000 per annum for luxury flat of 3 triplex buildings containing 9 luxury flats = N162,000 (One Hundred and Sixty-Two Thousand Naira)

(b) 24th March, 1975 to 23rd March, 1977 inclusive at the rate of N10,000 per annum per flat for 9 luxury Total : N342,000 (Three Hundred and Forty-two Thousand Naira)

(c)  Mesne profit at the rate of N10,000 per flat from 24th March, 1977 until judgment.”

Issues arising for a determination before the court of trial, so far as they were relevant, were set out in the appellant’s statement of claim thus:-

“(1) The plaintiff is a limited liability company with its head office situate at 36, Abakaliki Road, Enugu.

(2)  The defendant is a limited liability company carrying on business as Hotel Proprietors with its head office at the Independence Layout, Enugu.

(3)  The plaintiff is the owner of triplex buildings containing 9 luxury flats known as PLOT A 42 at Diobu Government Residential Area Port-Harcourt.

(4)  In 1967 the defendant through its accredited representative requested of the plaintiff to use the said building as an Annexe to its Hotel at Port-Harcourt known as HOTEL PRESIDENTIAL.

(5)  The plaintiff and defendant eventually agreed that the defendant would use and occupy the said buildings as part of its Hotel Presidential, Port-Harcourt with effect from 24th March, 1967 at an annual rent of N24,300 (312,150.00 pounds.) payable in advance.

(6)  By letter dated 20th March, 1967 the defendant acknowledged the receipt of all the keys including duplicates for the said buildings from the plaintiff. This letter will be founded upon.

(7)  Thereupon the defendant paid a year’s rent in advance and entered into occupation of the said buildings as agreed upon.