CORAM

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Cordelia Ifeoma Jombo-Ofo ,Justice court of Appeal

Biobele Abraham Georgewill, Justice court of Appeal

Ibrahim Wakili Jauro, Justice court of Appeal

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PARTIES

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UNITED BANK FOR AFRICA PLC.

APPELLANTS 

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OYEINTEKE GLOBAL NETWORK NIG. LTD

RESPONDENTS 

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AREA(S) OF LAW

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ABUSE OF COURT PROCESS – BANK’S RELIANCE ON MULTIPLE SUITS

 

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SUMMARY OF FACTS

The Respondent commenced action against the Appellant claiming the sum of N725,345,372.77 being money had and received through their account with the Appellant bank. The Respondent’s account had been subject to a Post No Debit Order by EFCC, but after a 6-year trial, they were discharged and acquitted. Though the restriction order was discharged on 21/10/2021, the bank continued to deny access to the account, citing various court proceedings by “investors” seeking to recover alleged investment funds. The lower court granted judgment under the Undefended List Procedure in favor of the Respondent.

 

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HELD

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1. The appeal was dismissed for lacking merit.

2. The judgment of the High Court granting the Respondent’s claims under the Undefended List Procedure was affirmed.

3. Costs of N500,000 were awarded against the Appellant.

 

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ISSUES

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Whether having regard to the facts and circumstances of the suit leading to this appeal, and the evaluation of evidence adduced by parties at the lower Court, it was right in assuming jurisdiction and granting the claim of the Respondent?

 

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RATIONES DECIDENDI

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CAUSE OF ACTION – DETERMINATION OF PLACE WHERE CAUSE OF ACTION AROSE

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“A cause of action, simply put, refers to the factual base or a factual situation, a combination of which, makes the matter in litigation an enforceable right or an actionable wrong. It is the factual situation which gives a person a right to a judicial relief.” – Per Biobele Abraham Georgewill, J.C.A.

“A cause of action, simply put, refers to the factual base or a factual situation, a combination of which, makes the matter in litigation an enforceable right or an actionable wrong. It is the factual situation which gives a person a right to a judicial relief.” – Per Biobele Abraham Georgewill, J.C.A.

 

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TERRITORIAL JURISDICTION – BASIS FOR DETERMINING COURT’S JURISDICTION

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“In determining the territorial jurisdiction of the lower Court, on the claims and facts as presented by the Respondent, as the law requires a Court so to do, the issue of validity or proof of the facts or claims does not arise for consideration at that stage.” – Per Biobele Abraham Georgewill, J.C.A.

 

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BANKER-CUSTOMER RELATIONSHIP – NATURE OF DEBT OBLIGATION

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“Money standing to the credit of a customer is a debt in the hand of the bank and for which it carries the obligation to honor, unless there be any legal impediment, not a mere settled intention to deny the customer of his money whilst it is used for trading or other businesses of the bank.” – Per Biobele Abraham Georgewill, J.C.A.

 

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UNDEFENDED LIST – SUITABILITY FOR LIQUIDATED MONEY DEMANDS

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“A claim for such debt, though arising from the contractual relation between the bank and its customer, is a claim very fit and proper, and indeed most appropriate, for determination under the Undefended list procedure as a liquidated money demand.” – Per Biobele Abraham Georgewill, J.C.A.

 

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BANK’S DUTY – RESTRICTION ON DENYING ACCESS TO ACCOUNT

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“A bank should not and indeed, cannot refuse a customer access to its account due to a pending Application that have not been moved or granted since an application is not and cannot be equated to an Order of Court.” – Per Biobele Abraham Georgewill, J.C.A.

 

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BANKER-CUSTOMER RELATIONSHIP – CONTRACTUAL NATURE

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“The relationship of a bank and its customer is contractual, that is to say a customer to a bank in relation to the business of banking is any person having an account with a bank or for whom a bank has agreed to collect items and includes a bank carrying an account with another bank.” – Per Biobele Abraham Georgewill, J.C.A.

 

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TRANSFER TO GENERAL CAUSE LIST – REQUIREMENT OF TRIABLE ISSUE

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“The Appellant neither made out any triable issue nor any real defense on the merit against the claims of the Respondent against it as would have warranted and/or necessitated the lower Court to transfer the Respondent’s suit from the Undefended List Cause list.” – Per Biobele Abraham Georgewill, J.C.A.

 

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MONEY HAD AND RECEIVED – NATURE OF CLAIM

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“The Respondent’s claim was one of money had and received, wherein the Appellant was alleged to have held onto the Respondent’s money in his custody unjustifiably and same had become a debt.” – Per Biobele Abraham Georgewill, J.C.A.

 

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BANK’S LIABILITY – EFFECT OF PENDING APPLICATIONS

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“A bank would therefore, be acting at its own peril should it deny a customer access to his funds on the basis of mere pending application. Indeed, such an action, which is not backed by law, if challenged, would amount to a breach of the contractual duty the Bank owes to its customer.” – Per Biobele Abraham Georgewill, J.C.A.

 

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ABUSE OF COURT PROCESS – BANK’S RELIANCE ON MULTIPLE SUITS

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“The pendency, dismissal and refilling of suits become a leeway for the Appellant to, perhaps in perpetuity, deny the Respondent of the use of its funds.” – Per Biobele Abraham Georgewill, J.C.A.

 

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BANK’S OBLIGATION – DUTY TO HONOR CUSTOMER INSTRUCTIONS

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“Once a customer deposit money with the Bank, the Bank becomes a Debtor, and the customer the Creditor, and therefore, a claim for recovery of debt, which is a liquidated money demand.” – Per Biobele Abraham Georgewill, J.C.A.

 

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SHAM DEFENSE – EFFECT ON UNDEFENDED LIST PROCEDURE

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“The entirety of the facts as put forward by the Appellant shows, in my view, and I so hold, a settled intention by the Appellant to enjoy the purported investors clear and wanton abuse of the processes of Court whilst it sits pretty on the funds of the Respondent.” – Per Biobele Abraham Georgewill, J.C.A.

 

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POST NO DEBIT ORDER – EFFECT OF DISCHARGE

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“The ‘post no debit’ lasted for 6 years for the criminal trial to be concluded and within that long period of 6 years the operation of the account was paralyzed and yet after the 6 years period, even upon the discharge and acquittal of the Respondent by a Court of law, the situation remained the same.” – Per Biobele Abraham Georgewill, J.C.A.

 

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CASES CITED

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STATUTES REFERRED TO

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1. Constitution of the Federal Republic of Nigeria, 1999 (as amended)

2. Court of Appeal Rules, 2021

3. Rules of Court (High Court of Nasarawa State)

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