The Court of Appeal Lagos Division has ruled in favour of Union Bank of Nigeria Plc, overturning a Federal High Court judgment in a dispute over a $2m loan granted to Origin Oil and Gas Limited.
In a unanimous decision, the appellate court allowed Union Bank’s appeal and set aside the lower court’s ruling.
Justice Paul Bassi delivered the lead judgment, with other members of the panel Justice Ngozika Okaisabor and Justice Abdulaziz Anka aligned with the lead judgment.
The case originated when Origin Oil & Gas Limited, along with its directors Abiodun Ponnle and Adetoye Adegbite, Commic Holdings Limited, Miccon Cables and Wire Ltd, and the Registrars of Titles from the Federal Ministry of Lands and Lagos State, filed a lawsuit against the appellant( Union Bank)through a writ of summons and statement of claim dated October 26, 2016 disputing the $2m, facility.
The respondents challenged the bank’s demand for loan repayment, citing alleged unlawful charges, excessive debits, and non-compliance with Central Bank of Nigeria regulations regarding agreed interest rates.
During the trial, Union Bank urged the court to appoint the CBN as an independent auditor to examine Origin Oil & Gas’ accounts for any excessive debits or irregularities.
The court granted the request without opposition. However, despite participating in the CBN audit, the first respondent elected to hire a private forensic accountant for a fee to conduct a separate audit reports without recourse to either the court or the appellant.
The Federal High Court had ruled in favour of the respondents, dismissing Union Bank’s counterclaim. Dissatisfied with the decision, Union Bank’s counsel, Kunle Ogunba (SAN), filed a notice of appeal on July 5, 2024, seeking to overturn the judgment.
In his lead judgment, Justice Paul Bassi stated that the issue is whether the lower court was correct in accepting the status of the prosecution witness two (PW2) as an expert witness and the consequent reliance on his report, who had been engaged in those professional capacities to undertake the review and reconciliation of the 1st Respondent’s Accounts with the Appellant Bank interests of judicial economy.
Justice Bassi noted that expert witnesses must meet specific criteria, including experience, qualifications, certifications, and peer recognition.
The court found that PW2’s credentials were insufficient to establish him as an expert witness.
Justice Bassi emphasised that the CBN audit was a court-approved, impartial review, unlike the forensic report commissioned unilaterally by the first respondent.
The court held that the lower court had erred in relying on the private audit report while disregarding the official CBN findings.
“The CBN report’s credibility is unimpeachable,” Justice Bassi stated.
“The lower court was wrong to base its judgment on a questionable report from a witness whose qualifications it should have scrutinized.”
The appellate court ruled that the lower court’s judgment in favor of the respondents was flawed and should be set aside.
It also upheld Union Bank’s counterclaim, affirming that the bank had provided sufficient evidence of the $2m loan disbursement, while the respondents failed to prove repayment.
“The appeal succeeds, and the judgment of the lower court is hereby set aside,” the court concluded. “The counterclaim by Union Bank is upheld, and judgment is entered in its favour.”
“For the avoidance of doubt, this appeal succeeds and the judgment of the lower Court is hereby set aside. In its stead, I find the Counter-Claim hereby succeeds and it is so ordered,” the court held.
-Advertisement-
Grab our latest Magazine, "Kelechi Amadi-Obi - Transcending the worlds of Law, Visual Art and Photography". Get your order fast and stress free.
For more details about Newswire Law&Events Magazine, kindly reach out to us on 08039218044, 09070309355. Email: newswiremagazine@yahoo.co.uk. You will be glad you did
Download E-MagazineDo you want to be heard, your events covered, your articles published, or need to advertise your products and services on our Blog and Magazine, reach out to us at Newswire Law and Events, you will be glad you did. For more details about our services, please call: 08039218044, 09070309355. Email: newswiremagazine@yahoo.co.uk
