The facts of the case are that Plaintiff/Respondent, a statutory body charged with the responsibility for collecting deductions from employers in respect of the National Provident Fund contributions made by their employees issued a writ of summons in the Federal High Court against the Defendant/Appellant claiming the sum of N156, 7792.44k being deductions made from and due to respondents on the contributions of its employees which Defendants/Appellant had failed to pay to the Respondents. After entering appearance Defendant/Appellant brought a motion on notice seeking an order to strike out the writ of summons and particulars of claim on the grounds inter alia, that
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1.
That the Plaintiffs claim even if successfully litigated was unenforceable.
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2.
The Defendant/Appellant Company was in Receivership and accordingly could not be sued by an unsecured creditor.
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3.
That the Federal High Court had no jurisdiction in respect of the subject matter of the claim; being one for recovery of a simple debt; not arising from the operations of the Companies Act 1968, or relating to the revenue of the Federal Government.
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4.
That the action was frivolous, speculative embarrassing and an abuse of the Court’s process.
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The affidavit in support of the motion summarily stated averred that the assets of the Defendant/Appellant Company were by means of a floating security charged to Savannah Bank Ltd., and that having defaulted in the terms of the Debenture the assets have crystallized and the Savannah Bank Ltd have appointed one Joseph Olutoyin Munis as the Receiver/Manager of the Defendant/Appellant Company over the assets of the Company. It was also averred that the Receiver/Manager is now the Agent of the Defendant/Appellant Company with respect to the assets charged.
The Chief Judge of the Federal High Court (Belgore J) dismissed the application on motion, holding that he had jurisdiction and that the suit against the appellant was maintainable at the instance of the respondent. The appellant appealed to the Court of Appeal without success. It therefore appealed to the Supreme Court.
