The appellant, as plaintiff, instituted the suit that led to this appeal in the erstwhile High Court of Oyo State of Nigeria, Ilesa Judicial Division (which is now in Osun State) claiming the respondent as defendant:

"The recovery of the sum of N5,547.70 (Five thousand, five hundred and forty-seven Naira Seventy Kobo) being the outstanding balance of the vehicle loan plus administrative charges thereon granted by the plaintiff to the defendant at this own request in the month of May 2981."

The respondent filed a defence to the action and counter-claimed for allowance from 1/1/82 until 3/7/82 at N500.00 per month totalling N3,500.00 and also allowance at the same rate of N500.00 per month from 31/7/82 until the end of the action.

The basis of the appellant's claims is the letter issued by the Oyo State Ministry of Local Government appointing the respondent as chairman of the Local Planning Authority. The respondent as defendant contended at the lower court that his appointment was subsisting and had not been terminated and that he is entitled to the remunerations contained in the letter of appointment. Upon completion of pleadings, evidence was led by both parties in support of their respective positions and after the address by leaned counsel for both parties, the learned trial Judge in his reserved and considered judgment acceded to the claim of both parties.

The appellant was dissatisfied with the award of N4, 00.00 made in favour of the respondent as per his counter-claim and appealed to the Court of Appeal.

The following statutory provisions were considered in the determination of this appeal:

Sections 4(1); 5(1) & (2); 9 (1) & (3) of the Town and County Planning Law Cap 125, Laws of Oyo State, 1978.

Section 11 (1) (b) of the Interpretation Act No 1 1964. It provides:

Order 21 rule 3, High Court (Civil Procedure) Rules Cap 46 laws of Oyo State 1978:

"A defendant in an action may set off or set up by way of counter claim against the claims of the plaintiff any right or claims whether such set off or counter-claim sounds in damages or not and such set off or counter-claim shall have the same effect as a Statement of Claim in a cross action as to enable the Court to pronounce a final judgment in the same action both on the original and on the cross claim ...."