GBADAMOSI SANUSI OLORUNFEMI & ORS VS CHIEF RAFIU EYINLE ASHO & ORS
June 26, 2025DAMG PAM VS SALE DANG GWOM
June 26, 2025Legalpedia Citation: (2000) Legalpedia (SC) 15511
In the Supreme Court of Nigeria
Fri Jan 14, 2000
Suit Number: SC.114/91
CORAM
UMARUATU KALGO JUSTICE, SUPREME COURT
E.O. OGWUEGBU, JUSTICE, SUPREME COURT
O. ACHIKE, JUSTICE, SUPREME COURT
U.A. KALGO, JUSTICE, SUPREME COURT
A.B. WALI, JUSTICE, SUPREME COURT
PARTIES
PAN BISBILDER (NIGERIA) LIMITED APPELLANTS
RESPONDENTS
AREA(S) OF LAW
SUMMARY OF FACTS
The appellant, as plaintiff, sued the respondent, as defendant, for breach of contract claiming a total of N429,869.00 comprising special and general damages; the said breach of contract had arisen from defendant’s failure to honour its loan agreement of N116,500.00 entered into with the plaintiff
HELD
It was held that neither party could enforce any provision of the loan agreement while the parties have contravened the provision of the statute
ISSUES
1. Whether the diversion of fund under the contract of loan between the parties subsumed under Agricultural Guarantee Credit Scheme Fund Act 1977 rendered the said contract illegal and void to the extent that neither the appellant nor the respondent can enforce the said loan contract.2. Whether the Court of Appeal was right to have dismissed the appellant’s cross-appeal on all the heads of complaint as a matter of course
RATIONES DECIDENDI
ANY PROPERTY TRANSFERRED IN AN ILLEGAL CONTRACT IS IRRECOVERABLE
“The result is that generally money paid or property transferred under illegal contract is irrecoverable where both parties are equally guilty of the fact of illegality. This is also buttressed by the maxim, in pari delicto potior est conditio defendentis, which means that where the parties are both at fault, the condition of the defendant is better” … ACHIKE. J.S.C
CASES CITED
1. Fashina v. Odedina (1957) WRNLR. 45 and2. Abesin & Anor, v. Iyaegbe (1958) WRNLR. 67.,3. Cowan v. Milbourn (1867) LR 2 Ex 230, Herman v. Jeuchner (1985) 15 QBD. 561 Parkinson v. College of Ambulance (1925) KB
STATUTES REFERRED TO
Agricultural Guarantee Credit Scheme Fund Act 1977
