Wema Bank PLC V. Arison Trading And Engineering Company Limited & Anor (2015)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

HARUNA SIMON TSAMMANI, J.C.A. (Delivering the Leading Judgment)

This appeal is against the judgment of the Ogun State High Court, sitting at Abeokuta in Suit No: AB/25/2009, delivered by The Hon. Justice P. A. Onamade on the 24th day of June, 2013.

The Respondents in this appeal were the Claimants at the Court below, while the Appellant was the Defendant. The Respondents as Claimants had taken out a Writ of Summons against the Appellant, wherein they prayed the Court below to grant them the following reliefs as per Paragraph 37 of the Amended Statement of Claim:

“38. WHEREOF the Claimants claim against the Defendant as follows:

(i) Declaration that the detention of the 2nd Claimant’s title documents registered as No.59 at page 59 in Volume 1853 of the Lands Registry, Ibadan, by the Defendant on account of a debt long settled inspite of repeated demand is illegal, unlawful and unconscionable.

(ii) The sum of N285,000,000.00 (Two Hundred and Eight-Five Million Naira) being special damages for the losses suffered by the Claimants owing to the act of the Defendant.

PARTICULARS

(a) Loss of projected earnings from November, 2008 to March, 2009 = N270,000,000=00

?(b) Cost of?preparation of feasibility report and procurement of materials on site = N15,000,000=00

(iii) The sum of N500,000,000=00 (Five Hundred Million Naira) as general damages for the Defendant’s wrongful detention of the Claimant’s document.

(iv) Interest of 10% on the above sums from the date of judgment till same is liquidated.”

Briefly, the Plaintiffs/Respondents’ claim is that, sometime in 1981, the 1st Respondent applied for a loan of one hundred and fifty thousand naira (N150,000=00) from the defunct National Bank of Nigeria to enable it execute certain contract projects. That as condition for the grant of the loan,?the 1st Respondent was requested to deposit title documents of landed property. Accordingly, to satisfy that condition, the 2nd Respondent as chairman/Managing Director of the said 1st Respondent title released the documents of his landed property registered as No.59 at page 59 in volume 1853 at the Lands Registry office, Ibadan to the 1st Respondent. The 1st Respondent then deposited the title deeds of that property with the Appellant as security or collateral for the loan by executing a Deed of conveyance in favour of National Bank of Nigeria who

then perfected the mortgage.

The facts as disclosed in the pleadings and evidence adduced by the parties disclose that a dispute arose in the relationship between the National Bank and the Respondents. As a result of the dispute the Respondent instituted an action against National Bank in suit No: AB/200/96. Judgment in that case was delivered on the 10/9/1999 wherein, the Court adjudged the Respondents to be indebted to the Appellant to the tune of Seventy-five Thousand and Eighty-one Naira (N75,081.00) only.