Ras Palgazi Construction Company Limited V. Federal Capital Development Authority (2001)

LAWGLOBAL HUB Lead Judgment Report

KATSINA-ALU, J.S.C.

On 19/2/2001 I dismissed this appeal and indicated that I would give my reasons on 18/5/2001. I now give my reasons.

The appellant herein was the plaintiff at the Abuja High Court Suit No: FCT/HC/CV/95/89. The appellant had sued the respondent claiming as follows:

“(a) A declaration that the plaintiffs are entitled to payment of the value of the work done by them including materials on site.

(b) An order restraining the defendants from ejecting the plaintiffs from the contract construction site until the final determination of this court

(c) An order of the court that the defendants should quantify and assess the value of the work and investment so far made by the plaintiffs before re-awarding the contract to any other person”.

Although pleadings were ordered by the High Court the parties never exchanged pleadings as they both resolved to refer the issues between them to an arbitrator to be appointed by both parties. They therefore sought and obtained leave of the High Court to appoint an arbitrator to resolve the issues between them and report back to court. The court later ordered that the parties appoint an arbitrator within 7 days and that the arbitrator should submit his report within 30 days.

On 17th January, 1990 both parties appointed an arbitrator in the person of Patrick Okeke Akunyili, Esq. as ordered by the High court. They agreed that the arbitrator’s award shall be binding them. The arbitrator went into action and produced a report which was forwarded to the High Court on 20th February, 1990.

Before the High Court the respondent tried to set aside the award. The court in its ruling held that both parties were bound by the award. The court then declared that “the arbitration award is hereby made the judgment of this court.” The court also awarded interest of 20% on the arbitration award from 13th March. 1990.

The respondent’s appeal to the Court of Appeal was allowed. That Court per Mahmud Mohammed, JCA concluded:

“In the result this appeal succeeds and it is hereby allowed. The judgment of the trial court delivered on 13th March, 1990 declaring that-

The arbitration award is hereby made the judgment of this court is hereby set aside. In its place, a judgment recognising the arbitral award as binding and striking out the action filed by the respondent against the appellant in Suit No. FCT/HC/CV/95/89 is hereby substituted The order of the lower court awarding the respondent 20% interest on the arbitral award having been made without jurisdiction is also set aside.

Having regard to the outcome of this appeal I do not deem it appropriate to make any order as to costs. Each party shall bear its costs.”

The plaintiff, was dissatisfied with the decision of the Court of Appeal and has appealed against same upon a number of grounds.