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CaseLaw

Obikoya Vs. Wema Bank (1989) CLR 1(c) (SC)

Judgement delivered on January 20th 1989

Brief

  • Appeals
  • Appeals of mixed law and facts/strong>
  • Extension of time

Facts

This appeal is an off-shoot of a previous case which came before the Supreme Court sitting as a full Court. That case SC. 110/82 - Wema Bank Ltd. vs. Bronik Motors Ltd. and A. O. Obikoya. was later to become the leading authority on the limits of the jurisdiction of the Federal High Court.

The appeal herein arises from an interlocutory application brought after judgment in the principal case referred to above and relates to the proper construction to be placed on a portion of the judgment of this Court as it affects the liability of the ap¬pellant who was the 2nd Defendant in the original suit.

The relevant facts as they relate to this appeal are as follows and the parties will hereafter be referred to simply as Plaintiffs and Defendants.

On the 25th of March 1980, the Plaintiff, Wema Bank Limited took out a Writ of Summons against the Defendants in the High Court of Lagos for:

  • 1
    "Specific performance of an agreement between the parties and evidenced in letters dated 10/1/76, 28/1/76 and 2/2/76 whereby the Defendants promised to execute legal mortgage of the Defendants properties lying and situate at (a) 400 Herbert Macaulay Street, Yaba (Lagos) (b) Adekunle Fajuyi Street, Ibadan (c) Ijebu-Bye Pass, Oke-Ado, Ibadan (d) 21 Barracks Road, Calabar and (e) Mile 3 Aba/Port-Harcourt Road, Aba; in favour of the Plaintiffs to secure various overdrafts amounting to over N2,000,000.00 made to the Defendants in Lagos between 1976 and 1979.
  • 2
    The sum of N2,135,092.57k (Two Million One Hundred and Thirty Five Thou¬sand Ninety Two Naira and Fifty Seven Kobo) being balance due to the Plaintiffs for overdrafts granted by the Plaintiffs to the 1st Defendants at the Plaintiffs Mushin and Ebute-Metta Branches, in the normal course of their business as bankers to the 1st Defendants at their request and for bank charges incidental expenses upon money due from the Defendants to the Plaintiffs which money the Defendants have refused and or neglected to pay in spite of repeated demands.

Plaintiffs also claim interest on the said sum of N2,135,092.57k at the rate of 8% per annum from 1st October, 1979 until judgment and 5% per annum thereafter until final liquidation of the whole debt or part thereof."

It would appear that the2nd Defendant was sued as a guarantor of the 1st Defendant.

The case proceeded to trial and in his judgment, the learned trial Judge entered judgment for the Plaintiff on the personal liability of the 2nd Defendant as a guarantor of the 1st Defendant to the tune of 1/2 a million Naira (N500,000.00) chargeable with interest at the rate of 8% per annum. After dealing with other aspects of the case, judgment was entered against the Defendants

Dissatisfied, they appealed to the Federal Court of Appeal and then the Supreme Court

Issues

Dissatisfied, they appealed to the Federal Court of Appeal and then the Supreme Court......

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