L. T. Thadani & Anor V. National Bank Of Nigeria Ltd & Anor (1972)

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G. B. A.COKER, J.S.C. 

 The sole point for determination in this appeal is whether or not a letter produced in evidence at the trial as Exhibit “C” was a sufficient acknowledgment of a debt to take the case out of the provisions of the Statutes of Limitation.

The respondent, that is to say the National Bank of  Nigeria Ltd., had lent monies to the appellants by way of overdrafts on their current account and at the time of the institution of the present proceedings it is stated that the balance on the accounts of the defendants (now appellants) stood at 3,980.18.10d.

The plaintiffs then instituted the present proceedings against the defendants claiming the above amount. In the course of the proceedings and after the parties had delivered their first set of pleadings a third party, Dr. A. Maja was joined by order of court. The parties then filed and served amended pleadings and the case went to trial.

Both the present appellants, as defendants, and Dr. Maja as an added defendant, resisted the claims of the plaintiffs and Dr. Maja pleaded, inter alia that he would contend at the hearing that the action was “statute barred because more than six years has elapsed since the cause of the action arose.”  For reasons which are not relevant to this decision, it was adjudged that no case was made out by the plaintiffs against Dr. Maja and the action was struck out as against him.

We stated before that the appellants (who will hereafter in this judgment be referred to as the defendants) resisted the claims of the plaintiffs. Apart from alluding to the indemnity by Dr. Maja in their pleadings, they disclaimed liability in their statement of defence, paragraphs 8 and 9 of which read as follows:-

“8.   From the 30th day of January, 1956, the said joint account was never in credit and all transactions thereon were for the said partnership business of fishing.

9.     The plaintiff’s cause of action did not accrue within six years before the commencement of this action and the 1st and 2nd defendants will rely upon Section 3 of the Limitation Act, 1623 as a bar to this action.”

In a reserved judgment, the learned trial Judge held that the claim was not statute barred in that there was indeed an acknowledgment of the debt by the defendants which took the matter out of the Statutes of Limitation. In the course of the hearing, the plaintiffs had produced a letter dated the 7th  February, 1963, by which on that date their solicitor wrote to the defendants asking for payment of the amount now claimed. The letter was admitted in evidence as Exhibit “D” and it reads as follows:-

“Dear Sirs,
I am instructed by my clients, the National Bank of Nigeria limited, to demand from you the immediate payment of the sum of 3,980.18.10d. (Three Thousand Nine Hundred and Eighty Pounds Eighteen Shillings and Ten Pence) being amount long overdue and owing to their Bank up to and including the 31st January, 1963, as per attached Statement of Account.

Unless this amount is paid to my clients within seven (7) days from the date hereof, they shall be compelled to institute legal proceedings against you without further notice.”

The plaintiffs also produced a letter (admitted in evidence as Exhibit “C”) by which the defendants replied to the letter Exhibit “D”.  That letter, i.e., Exhibit “C”, is dated the 11th February, 1963, and it reads in full as follows-

“Dear Sir,

We acknowledge receipt of your letter of the 7th instant together with the statements of account enclosed.