Union Bank Of Nigeria Plc V Ravih Abdul & Co. Limited (2018)

LAWGLOBAL HUB Lead Judgment Report

SIDI DAUDA BAGE, J.S.C.

This is an appeal against the decision of the Court of Appeal, Lagos division delivered on the 18th February, 2013 wherein the lower Court allowed the appeal and granted all the reliefs sought by in the Respondent’s Amended Statement of Claim. Being dissatisfied with the Judgement of the lower Court, the Appellant appealed to this Court vide a Notice of Appeal dated 19th April 2013 as contained in pages 440-443 of the Record of Appeal.

The Appellant’s appeal is hinged on three grounds. Ground one alleges that the lower Court erred in law when it held that the Appellant was in breach of the letter of credit without giving effect to Exhibits D2, D2A, and D2B all which clearly established that payment was made in respect of the only letter of credit SF/93/60437 opened in the transaction.Ground two alleges error of law to the extent that the lower Court held that Exhibits D2, D2A, and D2B related to payments purportedly made in respect of different letter of credit. The third ground related to error of law by the lower Court when it held that the reliefs sought and proved by

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the Respondents at trial Court inclusive of damages are granted.

SUMMARY OF FACTS:

On the 26th April, 1993, the Respondent applied to the Appellant for an irrevocable Letter of Credit in the total sum 5,240.36 in favour of Vertika International Ltd, Cheshire UK. The Letter of credit No. SF/93/60437 was opened by the Appellant on the request of the Respondent, which was to expire on the 12th August, 1993. At the request of the Respondent, validity period of the Letter of Credit was extended to 31st day of October 1993. On the 30th September, 1993, the original shipping document of the goods supplied by the beneficiary (Vertika International Ltd) was delivered by the Respondent to the Appellant who was to forward same to the correspondent bank, Barclays Bank UK for payment to the beneficiary.

The Appellant acknowledged receipt of the shipping documents, stamped and forwarded same to the corresponding bank. The Appellant gave a Certified True Copy (CTC) of the shipping (Exhibit P11) to the Respondent to clear the goods supplied on the condition that the Appellant will forward the original shipping documents as

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agreed to the corresponding bank (Barclays Bank, UK) for payment to the beneficiary.

The Appellant is alleged to have traded with the Respondent’s foreign exchange, failed or refused to forward the shipping documents to the corresponding bank to enable it pay the value of the Letter of Credit to the beneficiary as a result of which no payment was made to the beneficiary (Vertika International Ltd) during the lifetime of the letter of credit and thereafter.

In delivering its judgement on 18/2/2013 the Court of Appeal in a split decision allowed the appeal and granted the reliefs sought by the Respondent herein as contained at pages 409-439 of the Record of Appeal. The appellant herein being dissatisfied with the said Judgement filed a Notice of Appeal to this Court (Pages 440-443 of the Record).

ISSUES FOR DETERMINATION:

The Appellant formulated four (4) issues for determination at page 4 of the Appellant Brief of Argument, thus: