CORAM

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ELIAS CHIEF JUSTICE OF NIGERIA

LEWIS JUSTICE, SUPREME COURT

UDOMA JUSTICE, SUPREME COURT

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PARTIES

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BANK OF THE NORTH LIMITED APPELLANTS

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RESPONDENTS

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AREA(S) OF LAW

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SUMMARY OF FACTS

The appellant /plaintiff claimed against the defendant/respondent the sum of £88,000(Eighty Eight Thousand Pounds) as money debited from the plaintiffs account. The plaintiff was under directives from the defendant to pay in all notes issued by the defendant between 1959 and 1965 and received by the plaintiff from individuals before the close of business on the 22nd day of Jan 1968 to the defendant before the close of business on 29th of Jan 1968. The plaintiff paid £88,000 to the defendant between 23rd and 26th Jan 1968 and same was credited by the defendant to the Plaintiffs account but was later debited.

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HELD

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The Supreme Court held that the procedure required and laid down by the Central Bank for conversion had not been complied with. The appeal accordingly failed and was dismissed with 44 Guineas costs to the respondents.

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ISSUES

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Whether the learned trial Judge erred in failing to consider, deal with or answer the plaintiffs contention that in any event the defendants were under the obligation to redeem all the old currency notes forming the subject matter of the plaintiffs claim upon demand and that by reason of Sections 21 and 23 of the Central Bank of Nigeria Act Cap. 30 the plaintiffs must be entitled to the relief claimed.

The learned trial Judge erred in failing to consider the effect of the admissions by the defendant witnesses that none of the said old currency notes were lost, stolen, mutilated or imperfect.”

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RATIONES DECIDENDI

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DISCRETIONARY POWER

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“if a discretion whether or not to approve something is given to someone then the person exercising the discretion can require conditions to be fulfilled before he is willing to exercise that discretion in favour of an applicant.” Per I. Lewis, JSC

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CENTRAL BANK OF NIGERIA ACT

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“As Section 1 (2) of Decree No. 51 of 1967 specifically provides that inconsistent provisions of the Central Bank of Nigeria Act must be read subject to Decree No. 51 of 1967 we think Section 21(3) of the Act (Cap. 30) must be read subject to the provisions of the Decree as to how new currency may be issued in place of old currency whether it is described as being “replaced” or “redeemed” Per I. Lewis, JSC

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CASES CITED

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STATUTES REFERRED TO

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Central Bank (Currency Conversion) Decree 1967 (Decree No. 51 of 1967)

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