RICHARD EJEGI V COMMISSIONER OF POLICE
August 5, 2025ARAB BANK (NIG) LTD V ALHAJI AMINU DANTATA
August 5, 2025Legalpedia Citation: (1977-10) Legalpedia (SC) 43171
In the Supreme Court of Nigeria
Fri Oct 7, 1977
Suit Number: SC. 335/1975
CORAM
ALEXANDER, CHIEF JUSTICE, NIGERIA
EMANUEL OBIOMA OGWUEGBU, JSC. JUSTICE, SUPREME COURT (Read the Leading Judgment)
OKAY ACHIKE JUSTICE, SUPREME COURT
OBASEKI, JUSTICE, SUPREME COURT
PARTIES
BARCLAYS BANK OF NIGERIA LTD
APPELLANTS
ALHAJI MAIWADA ABUBAKAR
RESPONDENTS
AREA(S) OF LAW
BANKING-PAYMENT OF BANK LOANS-INTEREST
SUMMARY OF FACTS
The appellants gave overdraft facilities to the respondent. The respondent despite signing an undertaking to pay back with interest refused to pay back.
HELD
The court held that the respondent was liable to repay the loan received from the appellant with interest per the undertaking he had signed.
ISSUES
Whether the appellant was entitled to charge interest without any express stipulation to that effect in the contract
RATIONES DECIDENDI
INTEREST ON PAYMENT OF BANK LOANS
“Where there is no express agreement, it is settled law that the bank is entitled to charge compound interest on the basis that there is a custom to that effect or that the customer has impliedly consented where without protest he allows his account to be debited” Per OBASEKI, JSC
CASES CITED
1. HOLDER V.INLAND REVENUE COMMISSIONERS (1932) AC 624
2. PATON V.INLAND REVE NUE COMMISSSIONERS (1938) AC 341
3. EATON V.BELLS 5 B &ALD34
STATUTES REFERRED TO
Not Available
