-
Alsthom S. A. & Anor v. Chief Olusola Saraki
- kg
1 × ₦300
₦300
In Stock
Facts:
The respondent, in September 2001, sued the appellants at the Lagos State High Court to recover a facility of N100,000,000.00 (One Hundred Million Naira) including accrued interests, allegedly granted to the 1st appellant and guaranteed by the 2nd to 6th appellants. The respondent filed the action under the summary judgment procedure alleging that certain agreements were entered into between the respondent and the 2nd to 6th appellants in which the later agreed to guarantee the loan. It was further alleged that pursuant to the loan agreement, certain properties were used as security for the loan. The respondent contended that the 4th appellant agreed and deposited title documents to her properties at Plot 485, Cadastral Zone AQ, Abuja and Plot 154, Cadastral Zone A2, Zone 6, Wuse District, Abuja to be used as security for the loan. The 2nd appellant was also alleged to have deposited with the respondent title documents to his properties situate at No 8 Maiduguri Road, Sokoto Metropolis, Sokoto and No 105, Mudagel Road, Gowon Nana Layout, Sokoto Metropolis.
The respondent alleged that the 1st appellant defaulted in repayment of the loan and accrued interest which necessitated the move to commence sale of the properties. One of the properties belonging to the 4th appellant was sold for N55,000,000.00 (Fifty Five Million Naira) and a sum of N5,000,000.00 (Five Million Naira) was paid back to the 4th appellant and another sum of N2,750,000.00 (Two Million Seven Hundred and Fifty Thousand Naira) was paid as agency fee and the rest of the proceed paid into the 1st appellant’s account in order to liquidate the loan. The appellants were said to have made further payments into the account which were insufficient to liquidate the entire sum and the accrued interest hence, the action for summary judgment in which the respondent claimed an outstanding balance of N76,745,982.53 (Seventy Six Million, Seven Hundred and Forty Five Thousand, Nine Hundred and Eighty Two Naira, Fifty Three Kobo) as the outstanding principal and interest.
The appellants in their statement of defence and counter claim stated agreed to be indebted to the respondent to the tune of N100,000,000.00 (One Hundred Million Naira) but that they only drew down N81,000,000.00 (Eighty One Million Naira) and left a balance of N19,000,000.00 (Nineteen Million Naira) in the account. The appellants also denied other allegations and stated that it was no longer indebted to the respondent and that the alleged sums were already liquidated in three different transactions including money recovered by the respondent from the sale of the property belonging to the 4th appellant. The appellants also contended that the 7th appellant did not guarantee the loan and that the guarantee by the 3rd, 5th and 6th appellants was contingent upon the condition that the respondent must make specific demand in writing on every one of them before the guarantee could be effective. The appellants alleged that no such demand was made by the respondent.
On the 18th of January, 2006 the trial court gave judgment in favour of the respondent. The appellant became aggrieved and filed a notice of appeal at the Court of Appeal, Lagos Division seeking orders of the court to set aside the decision of the High Court and remit the matter back to the Court for trial de novo before another judge.