Standard Trust Bank Plc V. Chief Emmanuel Olusola (2007)

LawGlobal-Hub Lead Judgment Report

TIJJANI ABDULLAHI, J.C.A.

This is an appeal against the Ruling of the High Court of Justice, Ekiti State holding at Ado-Ekiti, Coram C. I. Akintayo J, delivered on the 7th June, 2006. The Appellant herein was the Defendant in the lower court whilst the Respondent was the Plaintiff who filed an action claiming as per the Writ of summons the following reliefs:

“(a) a declaration that the sum of two hundred and fifty thousand naira (N250,000.00) paid over to defendant on 16th December, 2003 was for purposes of buying shares in defendant.

(b) a mandatory order on defendant to issue to plaintiff the necessary shares certificates in respect of the said sum of money.

(c) two million naira (N2,000.000.00) general damages for defendant’s breach in giving plaintiff his share certificate and the consequent loss of dividends from 2004.”

The case as can be gleaned from the processes filed by the parties is that: The Plaintiff was and is still a Customer of the Defendant at its Ado-Ekiti branch. The Plaintiff, on the 16th December, 2003, paid to the defendant the sum of N250, 000.00 through a cheque No. 03349815 drawn on plaintiffs account with the defendant number NGN 0562526001 at the Ado- Ekiti branch to buy in Appellant shares which Appellant invited the public to buy.

The Respondent, on 28th December, 2004, when he heard nothing from the Appellant either rejecting his application or returning his money or sending share certificate to him, wrote to find out what was amiss. The Appellant did not reply to the said letter. On the 11th February, 2005, Respondent caused his solicitor to write to the Appellant and the Appellant again refused to give a reply.

As a result of pressures put on the Appellant by the Respondent, the former advised the latter to contact the Appellant’s Registrar which the Respondent did. In his reply of the 18th July, 2005, the Registrar requested the Respondent to liaise with the Appellant’s Ado-Ekiti Branch, which the Respondent did. The branch confirmed that it had record of the Respondent’s payment of N250, 000.00 for buying shares and promised to get in touch with the Appellant’s Registrar, but nothing positive followed. When recapitalization and the merger of banks were imminent, the Respondent

took the matter to the Ekiti State High Court, Ado-Ekiti for adjudication.

In a motion on notice dated 8th of February, 2006 and filed on 9/2/2006, the Defendant/Applicant sought for an order striking out the suit for want of jurisdiction to hear and determine same contending that only the Federal High Court had jurisdiction to handle the matter. The Respondent opposed the application and filed a counter-affidavit. After the addresses of both counsel in the case, the learned trial judge, on the 7th June, 2006 held thus:

“I here (sic) considered the claim of the Plaintiff before this court and came to the conclusion that what is before me has to do with a transaction between the individual customer and the Bank and to this end it is my considered and humble view that this court has jurisdiction to entertain this case.”

Dissatisfied with the ruling, the Defendant filed a notice of appeal which carries one ground of appeal. (See page 42 of the record).

In accordance with the Rules of this court, Order 6 RR 2 and 4 of the Court of Appeal Rules, parties filed and exchanged their respective briefs.

The Appellant in his brief of argument undated but filed on 7th February, 2007 formulated a sole issue for determination of the appeal as follows: