CORAM

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Joseph Olubunmi Kayode Oyewole JCA

Balkisu Bello Aliyu JCA

abubakar mahmud talba JCA

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PARTIES

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1. WEST AFRICAN BATTERIES LIMITED (IN RECEIVERSHIP)

2. OTUNBA OLUTOLA SENBORE

APPELLANTS 

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1. STEEL AND ENGENEERING WORKERS UNION OF NIGERIA

2. (SUING FOR THEMSELVES AND ON BEHALF OF THE STAFF AND WORKERS OF WEST AFRICAN BATTERIES)

RESPONDENTS 

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AREA(S) OF LAW

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LABOUR LAW, CONTRACT, RECEIVERSHIP, JURISDICTION, APPEAL

 

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SUMMARY OF FACTS

The Respondents, representing 411 workers of West African Batteries Limited, initiated an action against the Appellants at the National Industrial Court. They sought declarations that their employment contracts were still subsisting and valid and that they were entitled to outstanding wages, benefits, gratuities, and terminal benefits. The Appellants contended that the receiver’s duties did not include settling employment claims. The National Industrial Court ruled in favor of the Respondents, granting most of their reliefs. Dissatisfied, the Appellants filed an appeal, challenging the jurisdiction of the lower court and the findings related to the receiver’s duties.

 

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HELD

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The Court of Appeal struck out the appeal, ruling that the record of appeal was incomplete. The court held that without a complete record, it lacked the jurisdiction to hear the case. Consequently, the decision of the lower court stood.

 

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ISSUES

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1. Whether the trial court had jurisdiction to hear the matter, considering the joinder of the receiver (2nd Appellant), who had no employment contract with the Respondents.

2. Whether the trial court erred in ordering payment of entitlements based on an agreement and a letter without proper evaluation of the evidence.

3. Whether the 2nd Appellant was a necessary party in the action.

4. Whether the trial court’s finding that the receiver was responsible for settling the employees’ terminal benefits was supported by evidence.

 

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RATIONES DECIDENDI

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EMPLOYMENT CONTRACTS – CONTINUATION OF SERVICE DURING RECEIVERSHIP

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“An employment contract does not automatically terminate upon the appointment of a receiver. The receiver is obligated to maintain the contractual rights of employees until the court or relevant authority properly determines otherwise.” – Per Joseph Olubunmi Kayode Oyewole, J.C.A.

 

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RESPONSIBILITIES OF A RECEIVER – SETTLING EMPLOYEE CLAIMS

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“A receiver is responsible for managing the assets of a company in receivership, which includes obligations toward employees if their contracts are subsisting. Failure to settle such claims could amount to a breach of duty.” – Per Balkisu Bello Aliyu, J.C.A.

 

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JURISDICTION OF THE NATIONAL INDUSTRIAL COURT – SCOPE OF LABOUR DISPUTES

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“The National Industrial Court has exclusive jurisdiction to determine disputes arising from labour relations and employment contracts, including cases involving the termination of employees during receivership.” – Per Abubakar Mahmud Talba, J.C.A.

 

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APPEALS BASED ON INCOMPLETE RECORDS – EFFECT ON JURISDICTION

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“An incomplete record of appeal deprives an appellate court of the jurisdiction to hear the case. The record must be complete and accurate for the appellate court to exercise its adjudicatory powers.” – Per Joseph Olubunmi Kayode Oyewole, J.C.A.

 

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ENTITLEMENTS UNDER A COLLECTIVE AGREEMENT – EMPLOYER’S OBLIGATION

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“Where a collective agreement exists between an employer and employees, the employer is bound to honor the terms of that agreement regarding entitlements, including terminal benefits.” – Per Balkisu Bello Aliyu, J.C.A.

 

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EVALUATION OF DOCUMENTARY EVIDENCE – IMPACT ON DECISION

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“The trial court’s reliance on documentary evidence such as the agreement and the Request for Terminal Benefits Letter was proper. These documents were sufficient to determine the rights of the parties.” – Per Abubakar Mahmud Talba, J.C.A.

 

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JOINDER OF PARTIES – NECESSITY OF A PARTY TO THE PROCEEDINGS

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“The joinder of a receiver in a labour dispute is necessary if the receiver is acting on behalf of the company in managing its assets, including employment obligations.” – Per Joseph Olubunmi Kayode Oyewole, J.C.A.

 

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JURISDICTION OVER RECEIVERSHIP MATTERS – SCOPE OF THE FEDERAL HIGH COURT

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“Receivership matters fall within the exclusive jurisdiction of the Federal High Court, especially where the receiver’s actions are connected to the company’s assets. However, employment disputes remain within the National Industrial Court’s jurisdiction.” – Per Balkisu Bello Aliyu, J.C.A.

 

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FAILURE TO EVALUATE EVIDENCE – BREACH OF FAIR HEARING

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“The Appellants’ argument that the trial court failed to evaluate certain evidence was without merit. The trial court adequately considered all the material facts before arriving at its decision.” – Per Abubakar Mahmud Talba, J.C.A.

 

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RECEIVER’S OBLIGATION TOWARD EMPLOYEES – TERMINAL BENEFITS

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“A receiver is obligated to settle the outstanding terminal benefits of employees where their contracts have not been terminated by the appropriate process.” – Per Joseph Olubunmi Kayode Oyewole, J.C.A.

 

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COMPLETE RECORD OF PROCEEDINGS – PREREQUISITE FOR APPEAL

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“The absence of a complete record of proceedings renders an appeal incompetent. Without all relevant documents from the trial court, the appellate court cannot properly adjudicate the matter.” – Per Balkisu Bello Aliyu, J.C.A.

 

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EXTENT OF JURISDICTION – NATIONAL INDUSTRIAL COURT

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“The jurisdiction of the National Industrial Court is broad, encompassing all employment-related disputes, including those involving receivership, as long as the issue pertains to employer-employee relations.” – Per Abubakar Mahmud Talba, J.C.A

 

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STRIKING OUT APPEALS DUE TO INCOMPLETE RECORDS

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“An appellate court must strike out a case where the record of appeal is incomplete, as this prevents the court from exercising its full jurisdiction over the appeal.” – Per Joseph Olubunmi Kayode Oyewole, J.C.A.

 

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CASES CITED

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STATUTES REFERRED TO

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• Section 254C(1) of the Constitution of the Federal Republic of Nigeria 1999 (as amended)

• Section 293 and Section 494 of the Companies and Allied Matters Act, Cap C20, Laws of the Federation of Nigeria, 2004

• Section 7(1) (a) (i) & (ii) of the National Industrial Court Act, 2006

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