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CaseLaw

Adedeji V. Obajimi (2018) CLR 4(j) (SC)

Judgement delivered on 20th April, 2018

Brief

  • Terms of agreement
  • Equity
  • Extrinsic evidence
  • Contract
  • Concurrent finding of fact
  • Issues for determination
  • Section 135 of the Evidence Act 2011
  • Section 138 of the same Evidence Act
  • Section 28 of the Evidence Act
  • Section 1(2) (a) of the Robbery and Firearms (Special Provisions) Act 1990
  • Section 3 (1) of the Robbery and Firearms (Special provisions) Act 1990
  • Section 135 of the Evidence Act 2011
  • Order 40 Rule 7 of the Oyo State High Court Civil Procedure Rules, 1988

Facts

This is an appeal against the Judgment of the Court of Appeal delivered on the 14th day of June, 2007; coram: Afolabi Fabiyi, Musa Dattijo Muhammed, Amina Adamu Augie, JJCA., sitting at the Ibadan Judicial Division of the Court of Appeal wherein, the learned Justices of the Court of Appeal allowed the Appeal taken out by the Respondent who was then the Appellant before the Court below. The facts that led to this appeal are hereinafter succinctly reproduced.

The Respondent, who at the time, was the chairman of a business concern: International Insurance Group Nigeria Limited intended to sell the business and the Appellant was willing to buy. To this effect, the Appellant and Respondent executed a Memorandum of understanding (Exhibit 7) on 4th February, 1999. By that Memorandum of understanding, parties agreed that the purchase price of the Business shall be N5,000,000.00 (Five Million Naira only), it was also agreed that the Appellant shall pays the purchase price on or before 30th April, 1999. It was also agreed by the parties that the Appellant shall bear some sundry expenses one of which included 15% statutory deposit with the Central Bank of Nigeria.

The Appellant went ahead to pay the sum of N500,000.00 (Five Hundred Thousand Naira only) as statutory deposit to the Central Bank of Nigeria.

The purchase price of N5,000,000.00 (Five Million Naira Only), remained unpaid by the Appellant by 30th April, 1999, the date agreed by parties in Exhibit 7 for fulfillment of same. The Appellant however, on 26th October, 1999 wrote to the Respondent and his privies demanding from the Respondent the refund of the sum of N500,000.00 (Five Hundred Thousand Naira only), which had earlier been paid to the Central Bank of Nigeria. The Respondent, miffed by the Appellant's demands instituted an action before the High Court of Oyo State, Ibadan Judicial Division on the 6th day of July 2001, wherein he sought the following reliefs at page 5 of the record of appeal:

  • 1
    "A declaration that by the terms of the memorandum of understanding dated 4/2/99 entered into by the Plaintiff and the Defendant at SW9/1406 Ring Road, Ibadan and executed by the Plaintiff and the Defendant at the Plaintiffs office in Ibadan, the Plaintiff is neither indebted to the Defendant in the sum of N500,000.00 or indeed any other sum at all, nor liable to refund the sum of N500,000.00 to the Defendant nor indeed any sum at all.
  • 2
    The sum of N1,000,000.00 (N1 million) being general damages for breach of the aforesaid memorandum of understanding by the Defendant on 30/4/99.
  • 3
    21% interest on the sum claimed from 1/5/99 till judgment is given and thereafter at 21% till judgment sum is fully recovered.
  • 4
    Further and other reliefs.
  • 5
    Cost of this action."

    • The Defendant, on receipt of the writ and endorsed claim, filed a Counter-Claim where he prayed the trial Court for the reliefs at pages 22 to 24 of the record of appeal:

    • a
      "The sum of N500,000.00 paid by the Defendant to the Central Bank of Nigeria as Part of the Statutory Deposit on an agreement with the Plaintiff to buy the Plaintiff's International Insurance Group Limited which purchase was not conclusive.
    • b
      Interest at the rate of 21% on the said sum of N500,000.00 from 8th day of March 1999 until judgment is given and thereafter until the entire judgment sum is liquidated."

    Upon consideration of the cases of the parties, the Trial Court, in its judgment delivered on 28th May 2003, found that the Appellant was in breach of a fundamental term of the Memorandum of Understanding (Exhibit 7), which stipulated that the full purchase price of N5,000,000.00 (Five Million Naira) only be fully paid on or before 30th April, 1999.

    The Trial Court, in the interest of justice and on the principle of equity also ordered the refund of the sum of N500,000.00 (Five Hundred Thousand Naira Only), i.e. 15% statutory deposit paid by the Appellant to the Central Bank of Nigeria.

    The Respondent, dissatisfied with the judgment of the Trial Court, took out an appeal before the Ibadan Judicial Division of the Court of Appeal, vide a Notice of Appeal on 5th June, 2003, the Appellant with the leave of the Court below, Cross-Appealed against the part of the judgment touching on non-award of interest on the sum of N500,000.00 (Five Hundred Thousand Naira only), awarded to him by the Trial Court. The Court below found for the Respondent while setting aside the judgment of the trial Court and dismissed the Counter-Claim of the Appellant.

    The Appellant, irked, by the judgment of the Court below, has taken out this Appeal before this Court

Issues

  • 1
    Whether the Justices of the Court of Appeal were wrong in holding that the...
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