CORAM
MUHAMMADU LAWAL UWAIS, CHIEF JUSTICE, NIGERIA
UWANI MUSA ABBA AJI
EMMANUEL OLAYINKA AYOOLA, JUSTICE, SUPREME COURT
PARTIES
WEST AFRICAN BREWERIES LTD. APPELLANTS
RESPONDENTS
AREA(S) OF LAW
SUMMARY OF FACTS
The 1st defendant, as a receiver for creditors of the appellant, sold the properties of the company at gross undervalues. The trial court gave judgment setting aside the sale but the court of appeal reversed the decision on the grounds that particulars of lack of good faith were not pleaded.
HELD
The court allowed the appeal and restored the decision of the trial court on the ground that the decision was supported by evidence led at trial.
ISSUES
Whether the court below was right in its conclusion that the trial court decided the case before it outside the pleadings of the parties.Whether the court below was correct in its view that the under-valuation in Exhibit A, the valuation report of Williams and Partners had no nexus with the items in Exhibit F, the Sale Agreement between the Receiver and Savannah Ventures.Whether the consideration for the sale was uncertain.
RATIONES DECIDENDI
PARTY NOT BOUND TO PLEAD LEGAL CONSEQUENCE OF A FACT
A party although bound to plead material facts is not bound to plead the legal consequences of those facts – Ayoola J.S.C
EFFECT OF FAILURE TO PLEAD PARTICULARS OF GOOD FAITH WHERE THE OPPONENT FAILED TO ASK FOR SUCH PARTICULARS
Where lack of good faith is alleged without particulars, the opponent should ask that allegation be struck out or for particulars. However, it has also been held that where the opponent omits to ask for particulars, evidence may be given which supports any material allegation in the pleadings: Ayoola J.S.C
OBLIGATIONS OF A MORTGAGEE/RECEIVER EXERCISING A POWER OF SALE
That the mortgagee or receiver engaged in selling the mortgaged property has a duty to act bona fide. The only obligation incumbent on a mortgage selling under and in pursuance of a power of sale in the mortgage deed is that he should act in good faith- Ayoola J.S.C.
CASES CITED
National Investment and Properties Co Ltd., v. Thompson Organisation Ltd. & Ors [1969] NSCC 161;Akinloye & Anor v. Eyiyiola & Ors [1967] 5 NSCC 16.Okebola & Ors. v. Molake [1975] 9 NSCC 464.Omorhirhi & Ors v. Enatevwere [1988] 19 (Part 1) NSCC 909.Obijuru v. Ozims [1985] 16 (Part 1) NSCC 430Warner v Jacob (1882) 20 Ch D 220Eka-Eteh v. Nigeria Housing Development Society Ltd & Anor [1973] NSCC 373, 380Dean of Chester v. Smelting Corporation [1902] W.N.5;Hewson v. Cleeve [1904] 2 Ir. R. 536
STATUTES REFERRED TO
NONE