Cash Affairs Finance Limited & Anor. V. Inland Bank (Nig.) Plc (2000)

LawGlobal-Hub Lead Judgment Report

OLUDADE OLADAPO OBADINA, J.C.A.

This is an appeal against the judgment of the Kaduna State High court delivered on the 23rd of January, 1995 in favour of the respondent in suit No.KDH/15/95.

In the writ of summons issued on the undefended list, the respondent as plaintiff claimed against the defendant, now the appellants for the following reliefs:-

“(1) The sum total of N5, 357,780.82 (Five Million, Three Hundred and fifty-seven Thousand, Seven Hundred and Eighty Naira, Eighty Two Kobo) being the outstanding and unpaid debt owed by the 1st defendant to the plaintiff as at the 30th day of November, 1994, arising out of the simple contract premised on the Commercial paper Investment deposit placement made by the plaintiff with the 1st defendant on the 7th day of May, 1993 in the sum of N5,000.000 (Five Million Naira) at the interest rate of 45% per annum for a period of 90 days, which matured on the 5th day of August, 1993 the re-payment of which deposit placement was personally guaranteed by the 2nd defendant.

(2) 21% interest per annum on the said debt of N5,357,780.82 from the 30th day of November, 1994 up till judgment and 10% Court interest thereon until full liquidation.”

The summons was supported by affidavit and exhibits. The summons was issued on the undefended list under Order 22 rules 1, 2 and 4 of the Kaduna State High court (Civil Procedure) Rules, 1987.

At the hearing of the summons, the defendants, who are now the appellants, were absent. They were also not represented by counsel, but the Legal Officer of the 1st appellant wrote a letter to the Registrar of the Court and asked for adjournment.

The learned Counsel for the plaintiff, now the respondent, opposed the application for adjournment. The Learned trial Judge refused the application for adjournment, and allowed the respondent to prosecute the cause which was on the undefended list.

The summons was moved by counsel for the respondent and the learned trial Judge, pursuant to Order 22 Rule 4 of the Kaduna State High Court (Civil Procedure) Rules, 1987 entered judgment for the plaintiff/respondent against the appellants jointly and severally in the sum of (N5,357,780.82) Five Million, Three Hundred and Fifty-Seven Thousand, Seven Hundred and Eighty Naira, Eighty-Two Kobo, with interest at 21% per annum from 30th November, 1994 until judgment. i.e. 23rd January, 1995 and thereafter at 10% per annum until the Judgment debt was finally liquidated.

The appellants were dissatisfied with the decision of the trial court and appealed to this court on four (4) grounds of appeal. From the four grounds of appeal the appellants formulated three (3) issues for the determination of this court namely:-

“(i) Whether it is right in law for a court to enter judgment against parties against whom no writ of summons had been issued or served?

(ii) Whether or not the trial court had done enough in this case to satisfy itself that there were grounds for believing that the defendants had no defence to the claims of the plaintiff before hearing the cause on the undefended list.

(iii) Whether or not the trial Court had drawn correct interferences from the primary facts of the case before it.”

On receipt of the appellants brief of argument, the respondent filed a respondent’s brief wherein a notice of preliminary objection was given against ground 1 of the Appeal.