CaseLaw
UBN V. Nwoye (1989) CLR 12(d) (CA)
Judgement delivered on December 15th 1989
Brief
Facts
The respondent had been maintaining a current account with the Asaba Branch of the appellant since 1982. The respondent on 2nd July, 1984 drew across-cheque for N15,000.00 in favour of a firm, Ifeatu Onuorah & co. on his account with the appellant”s branch at Asaba.
The cheque No 360808/044465 dated 2nd July,1984 was presented thrice, on 2nd July 1984, the very day the draft was paid in, 6th July 1984 and 11th July, 1984. On each occasion the cheque, which is exhibit 35 in this appeal, was presented it was endorsed either “effect uncleared” or represent”. It is the respondent,s case that his account was in sufficient fund to meet the value which the cheque was drawn for. The respondent came to this conclusion on the strength of certain payments he made to his account on or about the day the cheque was made and first presented.
Upon inquiry, he was told that unless the Bank Draft cleared- there wasn't sufficient money in his current account to meet the cheque he drew. The Bank Draft cleared before the 11th of July. 1984.
Plaintiff/respondent sued claiming damages for wrongful dishonour of the cheque or in the alternative for negligence.
The trial court found the appellant/defendant Bank liable and awarded damages. The defendant Bank appealed to the Court of Appeal.
Issues
When are the proceeds of a bank draft or bank cheque available for drawing by...