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ALFRED AJAO & ORS v. UNILORIN MICROFINANCE BANK LIMITED

(2018) LPELR-45693(CA)

In The Court of Appeal of Nigeria

On Monday, the 27th day of August, 2018

CA/IL/20/18


Before Their Lordships

CHIDI NWAOMA UWA Justice of The Court of Appeal of Nigeria

HAMMA AKAWU BARKA Justice of The Court of Appeal of Nigeria

BOLOUKUROMO MOSES UGO Justice of The Court of Appeal of Nigeria


Between

1. ALFRED AJAO
2. AB-FACTOR GLOBAL CONCEPT LIMITED
3. DR. OLUSOJI O. ADEBISI
4. MRS. TITILADE ITIOLA
5. ODEBUNMI EZEKIEL OLUYEMI
6. DR. OMOLARA O. OLUWANYI - Appellant(s)

AND

UNILORIN MICROFINANCE BANK LTD - Respondent(s)


Other Citations

; ;


Summary

INTRODUCTION:
This appeal borders on the Undefended List Procedure.

FACTS:
This is an appeal against the decision of the High Court of Kwara State, delivered by I.A. Yusuf, J.,  granting the reliefs sought by the Respondent under the undefended list procedure.

The suit instituted under the Kwara State High Court (Civil Procedure) Rules 2005, sought the following reliefs:
(1) "An order of this honourable Court mandating the defendants to pay to the claimant the sum of N4,751,464,78 (Four Million Seven Hundred and Fifty One Thousand Four Hundred and Sixty Four, Seventy Eight Kobo) only being the outstanding debt of the Defendants to the claimant.
(2) An order of this honourable Court directing the Defendants to pay 10% (Ten Percent) annually of the sum of N4,751,464.78 (Four Million Seven Hundred and Fifty One Thousand Four Hundred and Sixty Four Naira Seventy Eight Kobo) or whatever is the judgment sum from the date of judgment of this matter till the final liquidation sum.
(3) And for order(s) as the honourable Court may deem fit to make in this case."

The case of the Respondent was that, it granted the sum of N8,000,000.00 (Eight Million Naira) in favour of the 1st and 2nd defendants/appellants, in two instalments - 18th February and 2nd April, 2015, to aid the supply of Fire Fighting Hilux (FIRST RESPONDER) to University of Ilorin. On 19th February, 2016, the 1st and 2nd Defendants applied again for another loan to refinance the contract and same was granted in the sum of N6,400.000.00K (Six Million, Four Hundred Thousand Naira Only).

The appellants made out that both principal sums were eventually repaid by the 1st and 2nd appellants instalmentally. It was alleged that all the transactions through which the loan was obtained and the repayments were done through the 2nd Defendant/Appellant's account domiciled with the claimant. It was further averred that the respondent made an entry of N15,800.000.00K to the 2nd appellant's account and that the 2nd appellant did not apply nor receive the said sum from the respondent.

Being of the view that the learned trial judge did not examine the propriety or otherwise of granting the reliefs under the undefended list procedure when it was apparent that the reliefs sought were not for a liquidated sum, appellants appealed to the Court of Appeal.

ISSUES:
The issues for determination were:
"(i) Whether having regards to the facts and circumstances of this case, the trial Court was right in granting the reliefs of the respondent under the Undefended List Procedure when the money claimed by the respondent was unliquidated and when there are still serious contentions between the 1st and 2nd Appellants and the respondent as to the amount owed.
(ii) Whether the trial Court was right to have held the 3rd to 6th appellants liable by holding that the two loans cannot be separated when it comes to the liability of the defendants in view of the various exhibits attached (i.e. Exhibits 1B, 1C, 1D, 2."
DECISION/HELD:
In the final analysis, the appeal was allowed and the matter remitted to the Chief Judge of Kwara State for re-assignment to a Judge other than the trial judge.


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