University Of Abuja v. Asset Management Corporation Of Nigeria & Ors (2024)

LAWGLOBAL HUB Lead Judgment Report – SUPREME COURT

JOHN INYANG OKORO, JSC (Delivering the leading judgment)

This appeal is against the judgment of the Court of Appeal, Holden at Lagos in Appeal NO.CA/L/655B/2017 coram Tom Shaibu Yakubu, Abimbola Osarugue Obaseki-Adejumo and Jamilu Yamamma Tukur, JJCA which said judgment was delivered on 29th March, 2019.

A summary of the facts which have led to the appeal are that the 1st respondent commenced suit No. FHC/L/CS/1346/2015 against the 2nd – 4th respondents under the special claim form pursuant to section 53 of the AMCON Act for the recovery of the sum of N1,085,859,446.14 (One billion, eighty-five million, eight Hundred and fifty-nine thousand, four hundred and forty-six naira, fourteen kobo) being debt originally owed to Union Bank Plc but bought over by the 1st respondent as bad debt. In their joint statement of defence which was amended on 19th August, 2016, the 2nd – 4th respondents- contended that the said sum was a loan facility obtained from Union Bank Plc with the approval of the Federal Ministry of Education and the National Universities Commission for the development of digital (ICT) Hub projects and training of Nigerian students in seven (7) Model Nigerian Universities, namely: University of Benin, Edo State, University of Port­Harcourt, Federal University of Technology, Minna, Federal University of Technology Owerri, Michael Okpara University of Agriculture, Umudike, University of Calabar and the appellant, which said projects had. been executed.

That the said loan obtained for the development of those projects was to be serviced through the ICT levies remittances by the various universities to the 2nd – 4th respondents. Upon the application of the 2nd – 4th respondents, as defendants, the court granted leave for issuance and service of a third party notice on the appellant as 4th third party and on 5th – 7th respondents as 1st, 2nd and 3rd third-parties, respectively.

The appellant did not file any process at the trial court in response to the third party notice.

At the proceeding of 3rd February, 2016 which was slated for hearing the 2nd – 4th respondents’ motion for summary judgment against the Third parties, learned counsel for the 2nd – 4th respondents withdrew his said motion on the objection that it was not ripe for hearing and applied orally for summary judgment against this appellant and Federal University of Technology, Owerri based on evidence of their admission of indebtedness.

The court entered summary judgment for the sum of N646,071,873 (Six hundred and forty-six million, seventy-one thousand, eight Hundred and seventy-three naira) against the appellant.

Dissatisfied with that judgment, the appellant filed its notice of appeal on 14th April, 2017 at the court below out of which it distilled three (3) issues for determination in its brief of argument. In the judgment now on appeal, the court below affirmed the decision of the trial court, hence this further and final appeal.

The appellant’s notice of appeal containing eleven (11) grounds was filed on 27th June, 2019 out of which Tale Alabi, Esq., of counsel for the appellant distilled five (5) issues for determination in the appellant’s brief filed on 20th January, 2021 but deemed properly filed on 12th February, 2024. The issues nominated for determination by learned counsel are as follows:

(1) Whether the lower court was right to have held that the trial Judge had jurisdiction over the third-party notice dated 27th April, 2016. and filed on 19th May, 2016 as a sub relief. (Grounds 1, 2, 3 and 4).

(2) Whether the lower court was right to have held that the non-filing of a defence to the third-party proceedings, in the circumstances of the case, was fatal. (Grounds 5, 6 and 9).

(3) Whether the lower court was right when their Lordship relied on the letter dated 17th September, 2014 written during negotiation by the appellant to the Honourable Minister of Education and copied same to the Managing Director of the 2nd respondent contrary to section 196 of the Evidence Act on admissibility of documents. (Grounds 7 and 8).

(4) Whether the lower court could raise an issue suo motu and give judgment on same without affording parties to address it on such issue. (Ground 10).

(5) Whether considering the facts and circumstances of the facts culminating in the present appeal, the judgment of the lower court of 29th March, 2019 is not at variance with the evidence before the lower court. (Ground 11).