CORAM
PARTIES
1. UNION BANK OF NIGERIA PLC.
2. ALHAJI MOHAMMED MOMOH.
APPELLANTS
AYODARE & SONS (NIG.) LTD
RESPONDENTS
AREA(S) OF LAW
SUMMARY OF FACTS
The Defendant/Appellant plan to exercise its right of sale of mortgaged property was foiled by the Plaintiff/Respondent on the grounds that the mortgage has executed by them was invalid as no consent was sought and obtained from the appropriate authority the Governor before the deeds were executed.
HELD
The Supreme Court held that the Deeds of mortgage were null and void having being based on consent issued and signed by inappropriate authorities.
ISSUES
1. Whether the learned Justices of the Court of Appeal were right when they held that the Deeds of Mortgage Exhibits 1 and Dl were invalid, null and void having been based on consent issued and signed by Ag. Chief Lands Officer or Permanent Secretary and Director-General, Kwara State Ministry of Lands and Housing respectively, who were not the appropriate authorities under the Land use Act.2. Whether on the peculiar facts of this case, the strict and inflexible application of the ratio decidendi in the case of Savannah Bank Ltd. v. Ajilo & Anor. [1989] 1 NWLR (Pt.97) 305 at 324 is not appropriate, distinguishable and inapplicable
RATIONES DECIDENDI
WHO CAN GIVE CONSENT TO MAKE A MORTGAGE DEED VALID
“it is incumbent on the Governor to give the consent, but in situations where the Governor cannot give the consent himself, Section 45 (1) of the same law creates an avenue whereby the Commissioner of Lands can exercise the power to do so in the event that the Governor delegates the power of consent” A.M. MUKHTAR, JSC
PROCEDURE FOR GETTING CONSENT TO MORTGAGE DEED
“Holder of a statutory right of occupancy who wishes to mortgage the property by assignment must first obtain the consent of the Governor of the State where the land is situate before carrying out the mortgage transaction” PER OGUNTADE, JSC
CASES CITED
Savannah Bank (Nig) Ltd. v. Ajilo 1989 1 NWLR page 97 page 305
STATUTES REFERRED TO