BEST LAW REPORT SUBSCRIPTION PRICE!!

  • Yisi (Nig.) Ltd v. Trade Bank Plc
  • 679
  • 2013-06-03
  • ₦ 200
  • Buy Now

Yisi (Nig.) Ltd v. Trade Bank Plc

YISI NIGERIA LIMITED

V

TRADE BANK PLC

SUPREME COURT OF NIGERIA

MITCHELL CHRISTOPHER CHUKWUMA-ENEH JSC ( Presided )

BODE RHODES-VIVOUR JSC

NWALI SYLVESTER NGWUTA JSC ( Read the Lead Judgment )

MUSA DATTIJO MUHAMMAD JSC

CLARA BATA OGUNBIYI JSC

SC.86/2005

FRIDAY, 22  FEBRUARY 2013

ACTION - Reliefs - Double compensation - Attitude of court thereto

APPEAL - Issues for determination - Power of appeal court to formulate its own issues

APPEAL - Issues for determination - Proliferation thereof - Impropriety of

Issue:

Whether from the pleadings and the evidence, the appellant has been credited with the unutilized foreign exchange of $82,560.00

Facts:

The appellant and respondent had a banker-customer relationship as the appellant operated accounts at the respondent’s branches at Oja Oba, Ilorin, Docemo Street, Lagos and at its Corporate Banking Department, Martins Street, Lagos.

The appellant applied for the Central Bank of Nigeria’s (CBN) Small and Medium Enterprises Loan Scheme (SME Loan Sheme) which was obtainable only through a commercial bank, and was granted. However, before the release of the fund, the appellant needed foreign exchange to import some vital raw materials, which was sourced for by the respondent as a loan to the appellant.

Part of the fund which came from the SME Loan Scheme was used in offsetting part of the loan released to the appellant by the respondent, leaving a balance of $82,560.00 in the appellant’s account.

As a result of standing regulations by the CBN guiding the utilization of foreign exchange disbursed under the SME Loan Scheme, this sum was sold to Messrs Marble Finance Ltd for N800,000.00 (eight hundred thousand naira), and accordingly credited to appellant’s account.

The appellant was however, dissatisfied as the exchange rate adopted by the respondent in converting into naira was below the appropriate rate. It accordingly petitioned the C.B.N. on the matter. The C.B.N. investigated the complaint and directed that the respondent re-credit appellant’s account with the sum of $82,560.00 at the applicable rate.

Dissatisfied still, the appellant commenced action against the respondent, wherein it sought the sum of $82,560.00 to be credited to its account, interest thereon, declaratory and injunctive orders and an order on the respondent to render proper accounts of the appellant with it.

The trial court found in favour of the appellant as claimed, except for the injunctive order. Dissatisfied, the respondent appealed to the Court of Appeal, which court set aside the judgment of the trial court and dismissed the appellants claim. Aggrieved, the appellant appealed to the Supreme Court.