Snig Nigeria Limited V. Wema Bank PLC (2016)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

ABIMBOLA OSARUGUE OBASEKI-ADEJUMO, J.C.A. (Delivering the Leading Judgment)

This appeal is against the Ruling of the High Court of Lagos State delivered by Hon. Justice RIB Adebiyi on the 28th November, 2006 dismissing the Appellant’s motion and holding that the Respondent’s counter-claim, ‘though unrelated to the original claim, can be tried together.’

The relevant facts that led to this appeal are that the Appellant vide a writ of summons and statement of claim both dated 13th December, 2005 claimed at the lower Court that the Respondent breached its banking mandate agreement with it by permitting unauthorized, withdrawal of money to be made from the Appellant’s bank account with the respondent. The Respondent in response filed a Statement of Defence and a counter-claim both dated 26th June, 2006 wherein the Respondent refuted and denied the claims of the Appellant stating that it did not breach the banking mandate agreement because according to the Respondent, the agreement was revised by the Board of Directors of the Appellant and subsequently ratified by conduct by the Appellant. Meanwhile, the respondent in its

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Counter-Claim, claimed the sum of N110,997,155.06 (one hundred and ten million, Nine Hundred and Ninety seven thousand, one Hundred and Fifty Naira, Six Kobo) being a sum the Appellant allegedly owed the Respondent on a project finance loan facility and which the respondent stated became due on the 21st July, 2004. The Appellant afterwards filed a motion dated 19th January, 2010 wherein it prayed for following:

1. “An order of this Honourable Court entering final Judgment for the Claimant against the Defendant in the grounds that the defendant has no defence to this suit as their averments in the Statement of Defence are admissions.
2. An order of this Honourable striking out the Counter-Claim in this suit on the ground that the cross-action set up by the way of counter-claim is not related to the principal claim in the statement of claim.

AND FOR SUCH FURTHER orders or further orders as this Court may deem fit to make to the circumstance.”

In its ruling dated 28th October, 2010 the trial Court dismissed the Appellant’s application. In holding that the Respondent did not admit to the averments the statement of claim the lower Court held that

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and admission must be clear and unequivocal. The Court also held that the Claimant’s and Defendant’s claims though unrelated can be tried together since the parties are the same.

Dissatisfied with the ruling of the lower Court, the Appellant filed a Notice of Appeal dated 8th November, 2010 containing two (2) Grounds of Appeal.

The Appellant’s brief which settled by Elvis E. Asia Esq of Chief Rotimi Williams Chambers is dated 9th June, 2015 and filed on 11th June, 2015 and the Reply Brief is dated and filed on the 26th June, 2015.

The Appellant formulated a sole issue as follows:

“1. Whether the Respondent’s Counter-Claim is one which can be properly tried with the Appellant’s original claim or one which ought to be struck out as the Counter-claim is not related, to the original claim.”

On the other hand, the Respondent’s Brief settled by Morenike George – Taylor (Miss) of Wemimo Ogunde & Co is dated 12th June, 2015 and filed on 15th June, 2015. The Respondent also raised a sole issue for determination which is as follows: