United Bank For Africa PLC V. Habila W. Marcus (2015)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

AMINA AUDI WAMBAI, J.C.A. (Delivering the Leading Judgment)

This appeal emanated from the decision of Kaduna State High Court in suit No. KDH/KAD/21/2010 delivered by Hon. Justice B. Muhammed on the 28th day of June, 2012 wherein Judgment was entered in favour of the Respondent in the sum of N2,800,000 claimed by the Respondent as illegal deductions by Appellant from his (Respondent’s) account.

By his statement of claim before the lower Court, the Respondent as the plaintiff, claimed against the Appellant then as the defendants the following reliefs:-

“1. The Plaintiff claims against Defendant the sum of Two Million, Eight Hundred Thousand Naira (N2,800,000.00) only being the total sum the Defendant illegally deducted from UBA Account No. 00500250002389 without the agreement or consent of the Plaintiff.

In the alternative,

2. The Plaintiff’s claim against the Defendant is for an account to be taken and rendered of the UBA Account No. 00500250002389 for the debt due to the Plaintiff in respect of the illegal deductions made by the Defendant from the month of May 2008 to the date of the Judgment of this suit.
3. An

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Order for the payment of any money found to be due to the Plaintiff on the taking of the account referred to above.

4. Interest on the above sum at the rate of 21% per annum from May 2008 until payment thereof of the sum claimed.
5. The cost of filing and prosecuting this action as well as legal costs”.

The facts of the case on the part of the Respondent, a businessman, are that the Respondent who was a staff of the Kaduna Refinery and Petro-Chemical Company (K. R. P. C.) a subsidiary Company of the Nigerian National Petroleum Corporation (NNPC), is a customer of and maintains a salary/private account No. 00500250002389 with the Appellant, a commercial Bank, at its NNPC IPPMC Depot, Kaduna, Kaduna State.

Sometimes in May, 2008, the Respondent applied for and was granted a personal loan (credit facility) of Four Million Naira (N4 M) by the Appellant to be repaid in four years at a monthly instalment of N126,000 until fully repaid and which was to expire on the 24th April, 2012.

Sometimes in May 2009, the Respondent voluntarily retired from the service of his employers. He applied for and was granted a mandate by the Appellant for his

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pension to be paid by his employers through the said salary/private account. Then, on the 2nd September, 2009, the sum of N13,105,613.00 was deposited into the Respondent’s said account by his employers as his gratuity. Respondent withdrew part of the money and left a balance of N3,400,000 in the account and issued a cheque of N3,000,000 to his brother, PW2, for withdrawal from the account.

PW2 presented the cheque for cashing on Friday 5th September, 2009 but was told to come back Monday 07/09/2009. An official of the Appellant called the Respondent who had travelled to USA, on phone to confirm if he issued the cheque. Respondent confirmed issuing the cheque to PW2.

However, in spite of the credit balance in his account, the cheque was not honoured. Respondent was later informed that the N3M could not be withdrawn from his account by the third party (PW2) because the Appellant, contrary to the agreed mode of instalmental monthly payment, illegally deducted the outstanding balance of N2.8M at once from the Respondent’s account in satisfaction of the facility. The appellant also continued to deduct the sum of N126,000.00 every month in spite of having