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Before Their Lordships
MUSA DATTIJO MUHAMMAD Justice of The Supreme Court of Nigeria
CLARA BATA OGUNBIYI Justice of The Supreme Court of Nigeria
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN Justice of The Supreme Court of Nigeria
EJEMBI EKO Justice of The Supreme Court of Nigeria
SIDI DAUDA BAGE Justice of The Supreme Court of Nigeria
CLARA BATA OGUNBIYI Justice of The Supreme Court of Nigeria
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN Justice of The Supreme Court of Nigeria
EJEMBI EKO Justice of The Supreme Court of Nigeria
SIDI DAUDA BAGE Justice of The Supreme Court of Nigeria
Between
GUARANTY TRUST BANK PLC –Appellant
AND
INNOSON NIGERIA LIMITED- Respondent
…………………….A…………………….
EJEMBI EKO, J.S.C. (Delivering the Lead Ruling): In the suit of Innoson Nigeria Limited, the present Respondent as the plaintiff, at the Federal High Court, Ibadan, the Nigeria Customs Service and the Attorney-General of the Federation were the defendants. In the final judgment delivered on 20th December, 2010, the Federal High Court, in favour of Innoson Nigeria Ltd, ordered the defendants (hereinafter called the judgment debtors) to pay:
“i. Seven Hundred Million, Two Hundred and Twenty Two Thousand Naira (N700,220.000.00) only
ii. 22% interest on the said sum from the commencement of the action per annum until the date of judgment; and
iii. 22% interest per annum on the said sum from the date of judgment until final liquidation of the judgment sum.”
The Appellant herein was one of the 5 banks moneys belonging to the Nigeria Customs Service were traced to. The Nigeria Customs Service was one of the Appellant’s Customers. On 2nd March, 2011, the Order Nisi issued by the Federal High Court was served on the Appellant (as the 5th Garnishee). In the further affidavit to show cause, filed on 18th April, 2011, one Olawale Akinwusi, on behalf the 5th Garnishee/Appellant, had averred, inter alia-
4.(a) That the Garnishee Order Nisi dated 2nd of March, 2011 made by [the Federal High Court] was served on the 5th Garnishee on 3rd March, 2011;
(b) That the Garnishee complied and filed affidavit to show cause and the statement of Account of the Nigeria Customs Service” was exhibited with the affidavit to show cause;
(c) That the 5th Garnishee thereafter conducted further search into its records using the name “Nigeria Customs Service Board” and discovered the following –
(i) That the 1st Judgment Debtor maintains revenue accounts only with the 5th Garnishee and when merged, the total sum standing to the credit of the revenue accounts as at 23rd March, 2011 is N4,238.514.64k (Four Million, two Hundred and Thirty-Eight Thousand, Five Hundred and Fourteen Naira, Sixty-four kobo only),
(ii) That the said accounts are Customs Duty and Customs Revenue Accounts for the purpose of collecting customs duties and other levies from various importers on behalf of the Government of the Federal Republic of Nigeria;
(iii) That the said funds are remitted daily to the Federation Account with the Central Bank of Nigeria because the funds in the accounts belong to the Federal Government of Nigeria;
(iv) That the 2nd judgment Debtor does not maintain any account with the 5th Garnishee.”
In the first affidavit to show cause at the trial Court the Appellant (the 5th Garnishee) attached the statement of Account, marked Exhibit A, for the period: 5th January, 2010 to 12th May, 2010 to support their averment on oath that all the Nigeria Customs Service had in its account with was a credit balance of N468.50. Innoson Nigeria Ltd., Judgment Creditor, immediately countered and debunked the assertion. And it turned out that the Appellant had engaged itself in material non-disclosure. This prompted the 5th Garnishee/Appellant to admitting that the 1st Judgment Debtor, the Nigeria Customs Service, had a further sum of N4,238,514.00, which it tried to explain away as revenue item. The trial Federal High Court thereafter, at page 68 of the record, formed “the firm view that the 5th Garnishee has not disclosed (sic: displayed?) utmost good faith as regards the proceedings”. It disregarded the Statement of Account, Exhibit A, with the credit balance of N468,50. The further affidavit of Innoson Nigeria Ltd, disclosed that the Nigeria Customs Service, the 1st Judgment Debtor, had in its account an amount up to N10,000.000,000.00 [Ten Billion Naira] as at 3rd March, 2011 when the 5th Garnishee/Appellant was served with the Order Nisi. The amount had been depleted to over five Billion [N5,000,000,000.00] Naira as at the time Appellant admitted only N4,238,514.00 as the amount in the account of the 1st Judgment Debtor, the Nigeria Customs Service.
The Court below found the Appellant to be ambivalent, and that it was blowing hot and cold, on the state of the account of the 1st Judgment Debtor. It had no difficulty affirming the garnishee order absolute made by the trial Court. It found, dismissing the contention of the Appellant that other moneys standing to the credit of the 1st Judgment Debtor were held in the revenue account payable to the Federation Account of the Federal Republic of Nigeria, that “the fact that it was for a particular purpose does not mean that it did not belong to the 1st Judgment Debtor.” The dismissal of their appeal against the garnishee order absolute has prompted this further appeal.
The original Notice of Appeal had 11 grounds of appeal. The Appellant, by the application filed on 5th February, 2016 is praying that –
“i. Leave be granted to it to affect some corrections in the original 11 grounds of appeal;
ii. 22% interest on the said sum from the commencement of the action per annum until the date of judgment; and
iii. 22% interest per annum on the said sum from the date of judgment until final liquidation of the judgment sum.”
The Appellant herein was one of the 5 banks moneys belonging to the Nigeria Customs Service were traced to. The Nigeria Customs Service was one of the Appellant’s Customers. On 2nd March, 2011, the Order Nisi issued by the Federal High Court was served on the Appellant (as the 5th Garnishee). In the further affidavit to show cause, filed on 18th April, 2011, one Olawale Akinwusi, on behalf the 5th Garnishee/Appellant, had averred, inter alia-
4.(a) That the Garnishee Order Nisi dated 2nd of March, 2011 made by [the Federal High Court] was served on the 5th Garnishee on 3rd March, 2011;
(b) That the Garnishee complied and filed affidavit to show cause and the statement of Account of the Nigeria Customs Service” was exhibited with the affidavit to show cause;
(c) That the 5th Garnishee thereafter conducted further search into its records using the name “Nigeria Customs Service Board” and discovered the following –
(i) That the 1st Judgment Debtor maintains revenue accounts only with the 5th Garnishee and when merged, the total sum standing to the credit of the revenue accounts as at 23rd March, 2011 is N4,238.514.64k (Four Million, two Hundred and Thirty-Eight Thousand, Five Hundred and Fourteen Naira, Sixty-four kobo only),
(ii) That the said accounts are Customs Duty and Customs Revenue Accounts for the purpose of collecting customs duties and other levies from various importers on behalf of the Government of the Federal Republic of Nigeria;
(iii) That the said funds are remitted daily to the Federation Account with the Central Bank of Nigeria because the funds in the accounts belong to the Federal Government of Nigeria;
(iv) That the 2nd judgment Debtor does not maintain any account with the 5th Garnishee.”
In the first affidavit to show cause at the trial Court the Appellant (the 5th Garnishee) attached the statement of Account, marked Exhibit A, for the period: 5th January, 2010 to 12th May, 2010 to support their averment on oath that all the Nigeria Customs Service had in its account with was a credit balance of N468.50. Innoson Nigeria Ltd., Judgment Creditor, immediately countered and debunked the assertion. And it turned out that the Appellant had engaged itself in material non-disclosure. This prompted the 5th Garnishee/Appellant to admitting that the 1st Judgment Debtor, the Nigeria Customs Service, had a further sum of N4,238,514.00, which it tried to explain away as revenue item. The trial Federal High Court thereafter, at page 68 of the record, formed “the firm view that the 5th Garnishee has not disclosed (sic: displayed?) utmost good faith as regards the proceedings”. It disregarded the Statement of Account, Exhibit A, with the credit balance of N468,50. The further affidavit of Innoson Nigeria Ltd, disclosed that the Nigeria Customs Service, the 1st Judgment Debtor, had in its account an amount up to N10,000.000,000.00 [Ten Billion Naira] as at 3rd March, 2011 when the 5th Garnishee/Appellant was served with the Order Nisi. The amount had been depleted to over five Billion [N5,000,000,000.00] Naira as at the time Appellant admitted only N4,238,514.00 as the amount in the account of the 1st Judgment Debtor, the Nigeria Customs Service.
The Court below found the Appellant to be ambivalent, and that it was blowing hot and cold, on the state of the account of the 1st Judgment Debtor. It had no difficulty affirming the garnishee order absolute made by the trial Court. It found, dismissing the contention of the Appellant that other moneys standing to the credit of the 1st Judgment Debtor were held in the revenue account payable to the Federation Account of the Federal Republic of Nigeria, that “the fact that it was for a particular purpose does not mean that it did not belong to the 1st Judgment Debtor.” The dismissal of their appeal against the garnishee order absolute has prompted this further appeal.
The original Notice of Appeal had 11 grounds of appeal. The Appellant, by the application filed on 5th February, 2016 is praying that –
“i. Leave be granted to it to affect some corrections in the original 11 grounds of appeal;
…………………….B…………………….
Continue reading GUARANTY TRUST BANK PLC v. INNOSON NIGERIA LIMITED
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