Unijoy Paper Products Ltd. V. Nigerian Deposits Insurance Corporation & Anor. (2012)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

RITA NOSAKHARE PEMU J.C.A. (Delivering the Leading Judgment)

The action, subject matter of this Appeal was commenced by Originating Application dated 27th of April 2009, by the Applicant (now Appellant) as gleaned from pages 1 – 7 of the Record of Appeal. It issued at the Investments and Securities Tribunal, Lagos.

It is for the following orders.

(I) AN ORDER directing the 1st Respondent to pay the Applicant the sum of N5,395,781.60k (Five Million, Three Hundred and Ninety-Five Thousand, seven Hundred and Eighty-One Naira, Sixty Kobo) being the total sum of money paid by the Applicant to the 22nd Respondent in its Initial Public Offer of shares in October 1992 which shares were not allotted.

(II) AN ORDER directing the 1st Respondent to pay the sum of N17,881,472.39 (Seventeen Million, Eight Hundred and Eighty One Thousand, Four Hundred and Seventy-Two Naira, Thirty-Nine Kobo) being interest on the principal sum, calculated at 21% per annum from 15th October 1992 to 23rd of July 2008 for the unallotted shares of the 2nd Respondents which the 1st Respondent is unjustifiably holding unto despite repeated demands.

(III) AN ORDER directing the 1st Respondent to pay interest at the rate of 21% from the said 23rd July, 2008 till judgment is obtained and thereafter till payment effected.

(IV) A declaration that the action of the 1st and 2nd Respondents in withholding the money paid by the Applicant for the unallotted shares of the 2nd Respondent is malafide, unjustifiable, illegal and unconstitutional.

(V) AND for such further or other orders as this Honourable Tribunal may deem fit to make in the circumstances.

FACTS OF THE CASE

The 1st Respondent (now 1st Respondent in this Appeal) is a regulatory authority that secures deposit made by the public in commercial Bank in Nigeria and is also the liquidator of the 2nd Respondent with its office in Lagos.

The 2nd Respondent (now 2nd Respondent in this Appeal) was a Public quoted bank with head office in Lagos, who offered its shares for sale through the Security and Exchange Commission.

On the 15th of October 1992, the Appellant made payment of the sum of N5,395,781.60k [Five Million, Three Hundred and Ninety-Five Thousand, Seven Hundred and Eighty-One Naira, Sixty Kobo) to the 2nd Respondent for the purchase of shares for some persons namely:

Jimi Lawal N2,395,781.60

Janet O. Lawal N1,000,000.00