CaseLaw
Savannah Bank V. Ajilo (1989) CLR 1(b) (SC)
Brief
Facts
1st plaintiffs stood surety for the 2nd plaintiff for a Bank Loan granted by the 1st defendant Bank. The loan was backed by a mortgage Deed made by the 1st plaintiff in favor of defendant Bank. The title deeds anchored to the mortgage was acquired by the 1st plaintiff in 1965.
Based on the default of the 2nd plaintiff, the defendant Bank took steps to realise the security under the mortgage by putting up a notice of action sale on the mortgage property.
In order to avoid the sale, Plaintiffs took out a summons, on the ground that the mortgage, not having been made with the Governor’s consent in accordance with section 22 of the Land use Act, was void and power of sale, thereunder, could not be exercised by the defendants.
The trial court found for the plaintiffs holding that since the mortgage was made without Governor’s consent, it was null and void.
Appellants appealed to the court of Appeal which dismissed the appeal, affirming the decision of the trial court. An appeal was made to the Supreme Court.
Issues
Whether a person, who is deemed to be a holder of a right of occupancy...