Union Bank of Nigeria Plc & Anor. V. Ifeoluwa Nigeria Enterprises Ltd. (2006)

LawGlobal-Hub Lead Judgment Report

RAPHAEL CHIKWE AGBO, J.C.A.

The respondent is a customer of the 1st appellant. On 26th February, 1996, the respondent sent one of its employees to the Isolo, Lagos branch of the 1st appellant to pay in some money into its account with the appellant. Some armed bandits broke into the bank and snatched some of the money already handed over to the 2nd appellant, a servant of the 1st appellant. On the refusal of the 1st appellant to credit the account of the respondent with the amount equivalent to the said snatched sum, the respondent proceeded at the Lagos State High Court against the appellants in suit No. ID/1593/96 praying the court as follows:

“1. The plaintiff’s claim against the defendants is in the sum of N925,000.00 (Nine hundred and twenty five thousand Naira) only being the amount of money within the defendants’ premises owing to the negligence of the defendants on Monday the 25th day of February, 1996 at about 11.00 hours at the Isolo branch of the defendant bank.

2. Plaintiff further claims interest at the rate of 21% per annum or as this Honourable Court may determine having regard to the prevailing Central Bank of Nigeria regulations thereon from the 26th day of February, 1996 until the whole sum claimed be paid.”

Pleadings were exchanged, evidence led, and in a considered judgment, the court below adjudged as follows:

“After considering of all these, I prefer and believe the evidence of the PW1 that the amount on exhibit A! is what he took to the defendant’s bank on 26/2/96 out of which the sum of N735,000.00 was taken by armed robbers leaving the sum of N190,000.00 which was later credited to the account of the plaintiff’s company in No. 721857573 and I hold that the defendant bank is liable to pay the sum of N735,000.00 to the account of the plaintiff.

The defendant is further ordered to pay 21% interest per annum on the said amount from 26/2/96 until when the amount is credited.”

Being dissatisfied only with the interest adjudged, the appellants have filed this appeal. The grounds of appeal are set out hereunder:

Grounds of Appeal

1. The learned trial Judge erred in law in awarding interest to the plaintiff when there was no evidence conversed at the trial in support of this leg of the plaintiff’s claim.

Particulars of error

2. The learned trial Judge failed and or omitted to apply the fundamental principle of law that he who asserts must prove that those facts exist.

(i) The plaintiff claimed interest but refused to establish this claim by way of admissible oral or documentary evidence.

2. The learned trial Judge erred in law in awarding the plaintiff interest at the rate of 21% on the judgment debt.