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CaseLaw

Ponson Ent. Ltd V. Njigha (2000) CLR 12(d) (CA)

Brief

  • Formulation of issues
  • Receivership
  • Power of Manager
  • Judgment of the court

Facts

The appellants were the defendants in the High Court of Lagos State and the respondents the plaintiffs to 13 the suit claiming:

The appeal is from the order appointing an official receiver to take over and administer the warehouses of Ponson Enterprises Nigeria Ltd., the 1st defendant/appellant, located at Onitsha made by Ajakaiye, J., of the Federal High Court, Enugu. The order is sequel to the action filed by the respondent as the plaintiff against the 1st appellant, hereinafter called ‘the company’, the 3rd appellant, the company’s Chairman and Managing Director, the Corporate Affairs Commission as the 4th defendant and the 2nd defendant.

In his statement of claim the plaintiff/respondent asked for declaratory reliefs against the 4 defendants that (a) he is still a director of the company dated 15/1/97 removing him from the Board of the company (b) that the resolution of the company and/or its management and filed with the 4th defendant is null and void and (c) that neither 3rd defendant nor any of her 2 infant children is a director of the company. In addition, the plaintiff also asked for orders of injunction restraining (a) the 2nd defendant ‘from further managing the properties of the company and (b) the 3rd defendant ‘from interfering in the management and/or affairs of the company’.

  • a
    ‘appointing a receiver over the properties of the 1st defendant comprising inter alia, of goods in warehouses in Onitsha as listed in paragraph 21 of the statement of claim’.
  • b
    ‘… authorising the receiver to sell all or so much of the goods, wares merchandise in the aforesaid warehouses which are perishable and are likely to be wasted from keeping’.
  • The motion was supported by an affidavit to which the 3rd appellant who had in the meantime filed with the three other defendants a joint statement of defence also filed for herself and on behalf of the company a counter-affidavit and additional counter-affidavit to which the respondent filed a ‘Reply to counter Affidavit’. In that way the parties joined issue on the motion and in his Ruling the learned trial judge appointed the Registrar of his court as an official receiver with power ‘to enter into the warehouses in dispute (at Onitsha) and take possession of the goods there (which are properties of the company). The receiver was given the directives about the mode of his operation in relation to the inventory of the goods, their disposal and how to account for the proceeds.

    This appeal is against that order by the 1st and 3rd defendants

Issues

  • 1
    Whether the plaintiff has an alternative remedy at common law other...
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