NABEGU CO. (NIG) LTD v. AMCON & ORS

Judgment

ITA GEORGE MBABA, J.C.A. (Delivering the Leading Judgment) : Appellant filed this appeal against the decision of the Federal High Court, Kano, in FHC/KN/CS/51/2019, delivered on 1/6/2020 by Hon. Justice O. A. Egwuata, wherein he dismissed the plaintiff’s case against the Defendants.

The Appellant was the plaintiff at the lower Court, and the case at the lower Court (against the Defendants) was by originating summons, whereof the following questions were posed for determination: (1) Whether the Deed of Mortgage Debenture dated 07/07/99 and registered with the 4th Defendant as No. 192 at page 192 in Volume 13 (Mortgages) over the plaintiff’s assets, covered by Certificate of Occupancy No.

LKN/IND/RC/82/49, between the plaintiff and the 1st Defendant, has not been extinguished, the 1st Defendant having restructured the loan given to the plaintiff and taken shares in the plaintiffs’ company, in the name of the 2nd Defendant in place of the total indebtedness of the plaintiff. (2) Whether, in the circumstances of this case, the Deed of Mortgage Debenture dated 07/07/99 and registered with the 4th Defendant as No. 192 at page 192 in Volume 13 (Mortgages) over the plaintiff’s property, covered by Certificate of Occupancy No.

LKN/IND/RC/82/49, between Plaintiff and 1st Defendant, is of any legal effect to warrant the 1st Defendant to appoint the 3rd Defendant as receiver over the assets of the plaintiff. (3) Whether, in the circumstances of this case, the Plaintiff is entitled to the return of its Certificate of Occupancy No.

LKN/IND/RC/82/49, from 1st Defendant as well as an order setting aside the Deed of Mortgage Debenture and Deed of Appointment of the 3rd Defendant, registered and filed with the 4th and 5th Defendants, respectively.” Appellant had sought the following reliefs from the trial Court: (1) A Declaration that the Deed of Mortgage Debenture dated 07/07/99 and registered with the 4th Defendant as No. 192 at page 192 in Volume 13 (Mortgages), over the Plaintiffs property, covered by Certificate of Occupancy No.

LKN/IND/RC/82/49 has been extinguished by the taking of shares in the Plaintiff’s company in settlement of the debt. (2) An order discharging the Plaintiff from the Deed of Mortgage Debenture dated 07/07/99 and registered with the 4th Defendant as No 192 at page 192 in Volume 13 (Mortgages) over the Plaintiff’s property, covered by Certificate of Occupancy No LKN/IND/RC182149, the loan, the subject of the mortgage agreement, having been converted into shares in the Plaintiff’s Company. (3) A Declaration that the Deed of Appointment of Nassir Abdu Dangiri SAN, dated 30th November, 2017 as Receiver over the assets of the Plaintiff by the 1st Defendant, under and by virtue of the powers contained in the Deed of Legal Mortgage Debenture, is illegal and of no legal effect, the loan, the subject of the mortgage agreement, having been converted into shares in the Plaintiff’s Company. (4) An order setting aside the notice of appointment of the 3rd Defendant as Receiver/Manager, filed with the 5th Defendant on the 15th December, 2017. (5) An order of this Honourable Court vacating/annulling its order dated 30th January, 2018, in suit no FHC/KN/CS/06/2018, between the 1st Defendant and the Plaintiff, for want of jurisdiction, the loan, the subject of the mortgage agreement, having been converted into shares in the Plaintiff’s Company, and thus the mortgage agreement extinguished. (6) An order directing the 1st Defendant to return, forthwith, to the Plaintiff, the Certificate of Occupancy No LKN/IND/RC/82/49 given as collateral, the loan, the subject of the mortgage agreement, having been converted into shares in the Plaintiff’s Company. (7) An order mandating the 1st Defendant to retract the publication in the Leadership Newspaper, dated 04/05/18, with a written apology to be published in a national daily. (8) An order for damages in the sum of N200,000,000 00 (Two Hundred Million Naira Only) against the 1st Defendant. (9) And for such further order(s) as this Honourable Court may deem fit to make in the circumstances of this suit. (Page 40 of the appellant’s Brief) (See pages 1482 – 1490 (Volume 2) of the Records of Appeal.