African International Bank Ltd. V. Integrated Dimensional System Ltd & Ors (2012)

LAWGLOBAL HUB Lead Judgment Report

OLU ARIWOOLA, J.S.C

This is an appeal against the judgment of the Court of Appeal, Ibadan division, delivered on the 5th December, 2001. The present Appellant/Cross Respondent was the plaintiff before the trial court while the instant Respondents/Cross Appellants were the Defendants. The Plaintiff had claimed before the lower court as per its paragraph 24 of the further Amended Statement of Claim as follows:-

“Wherefore the Plaintiff claims from the defendants jointly and severally the sum of one million, seven hundred and eighty two thousand two hundred and twenty two Naira seventy eight kobo (N1, 782,222.78) being the balance of banking facilities and interest thereon granted to the 1st Defendant by the plaintiff at its Ilora Branch Oyo State in 1985 and 1987 and jointly and severally guaranteed by the 2nd and 3rd defendants which sum was outstanding at the close of business on 11th August, 1993. The defendant defaulted in the payment of the said sum as agreed whereupon the plaintiff demanded its repayment from each and everyone of them who have notwithstanding such demand neglected, omitted and or refused to pay same.

2. The Plaintiff claims interest on the said sum of N1, 782,222.78 at the rate of 39% per annum from the 12th August 1993 until judgment is given and thereafter at the rate of 10% per annum until final liquidation of the judgment debt.”

The parties filed and exchanged pleadings and the case proceeded to hearing. At the end of the trial, the trial court delivered its judgment on 27th October, 1997 wherein the court came to the following final conclusion:

“In the result, I find that the plaintiff has proved its case on the balance of probability. I therefore enter judgment for the plaintiff in the following terms:-

1. The sum of N150, 000 with interest at 15% per annum with effect from 30th April, 1987 till today and thereafter at 10% per annum until the whole amount is finally liquidated.
2. The sum of N180,000 with interest at 19% per annum with effect from 6th November, 1987 till today and thereafter at 10% per annum until the whole amount is finally liquidated.

The liability of the third defendant shall be limited to the sum of N250, 000 only while the liability of the first and second defendants are jointly and severally. The workings of interest shall be in conjunction with the Accountant of the High Court of Oyo State, Ibadan” (See page 53 of the record of appeal).

Dissatisfied with the final judgment, the defendants filed a Notice of Appeal containing two grounds of appeal. Also dissatisfied with the judgment, the plaintiff filed a Cross Appeal. Both parties filed and exchanged briefs of argument. The Court below therefore heard the matter on the following processes:-

– Appellants brief of argument.

– Appellants reply to the Respondent/Cross Appellant’s brief of argument.

– The Respondent/Cross Appellant’s brief of argument.

– Cross Appellant’s reply brief of argument to the Appellants’ response to Cross appeal.

At the end of the day the court below allowed the appeal, set aside the trial court’s judgment delivered on 27/10/1997 and in its place ordered as follows:-

Judgment is hereby entered for the plaintiff/respondent in the sum of N180, 000 with 19% interest thereon up to the expiry date of the loan on 30/11/87, there shall be 10% per annum interest thereon from 1/12/87 up till the date of the judgment on 27/10/97 and 10% per annum from 28/10/97 until the entire amount is fully liquidated.

2. Judgment is also hereby entered for the same plaintiff respondent in the sum of N150, 000 with 15% interest per annum on the said sum up to the 31/1/88, 10% interest thereon from 1/2/88 up to the date of the judgment on 27/10/97, and 10% per annum from 28/10/97 until the entire sum is fully liquidated.
3. The interest ordered shall be simple interest.
4. The parties are to meet at the office of the Deputy Chief Registrar of this court to calculate and arrive at the exact amount due to the respondent.
5. The plaintiff/respondent’s claim against the 3rd defend ant/appellant, having been commenced prematurely is struck out.
6. The appellants are awarded N5, 000 costs in favour of the respondent.”

The court below found that there was no merit in the cross appeal.