ABOSELDEHYDE LABORATORIES PLC VS.UNION MERCHANT BANK LIMITED & ANOR

CORAM

PARTIES

ABOSELDEHYDE LABORATORIES PLC APPELLANTS

UNION MERCHANT BANK LIMITED & ANOR

RESPONDENTS 

AREA(S) OF LAW

SUMMARY OF FACTS

The Appellant defaulted in payment of the loan facilities obtained from Respondent. In exercise of his rights, a Receiver was appointed by the Respondent to sell the properties of the Appellant. The Appellant then instituted an action challenging the mode of appointment of the Receiver who is also the 2nd Respondent and an injunction to restrain the 2nd Respondent from taking over the property. The trial court dismissed the application made by the Appellant and upon appeal to the Court of Appeal the appeal was also dismissed. Dissatisfied, the Appellant made further appeal to the Supreme Court.?

HELD

Appeal  dismissed.

ISSUES

None

RATIONES DECIDENDI

What to be considered before granting an injunction

“It is generally said that one of the guiding principles for consideration in an application for injunction pending appeal is how arguable the grounds of appeal are.” W.S ONNOGHEN J.S.C

“For a court to declare whether or not to grant an injunction pending appeal, it has, as of legal necessity to go into a consideration of the competing legal rights of the parties to the protection of the injunctive relief. It is a duty placed on an applicant seeking injunction pending appeal to establish by evidence in affidavit(s) the legal right he seeks to protect by the order which of necessity makes it mandatory for the court to go into the facts to determine whether such entitlement has been established”. W.S ONNOGHEN J.S.C

The Purpose of an Injunction

“It is settled law that the aim of an order of injunction is to protect an established right -of the applicant. This is a fundamental requirement.” W.S ONNOGHEN J.S.C

A Declaratory Judgment cannot be Stayed by an Interim Order

“It is settled law that a declaratory judgment or order of a court cannot be stayed by an Interim order ; except the declaratory order is coupled with a mandatory order – such as an order of injunction’ W.S ONNOGHEN J.S.C

CASES CITED

Tukurjys Government of Gongola State (1989) 4 NWRL 592;Akibu vs Oduntan (1991) 2 NWLR

STATUTES REFERRED TO

NONE

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