CASE TITLE: OLOPADE & ANOR v. AKINDE-PETERS (2023) LPELR-60969 (CA)
JUDGMENT DATE: 30TH JUNE, 2023
PRACTICE AREA: COMPANY LAW
LEAD JUDGMENT: JOSEPH SHAGBAOR IKYEGH, J.C.A.
SUMMARY OF JUDGMENT:
INTRODUCTION:
This appeal borders on the locus standi of a receiver/manager to bring an action in his own name.
FACTS:
The appeal emanated from a decision of the Federal High Court sitting in Lagos (the lower Court) whereby it dismissed the preliminary objection that the respondent had the locus standi as the Receiver/Manager of Metal Africa Steel Products Ltd. to institute the action in his own personal name and that the suit disclosed a reasonable cause of action.
In outline, the respondent sued the two appellants in his own name as an appointed Receiver/Manager of Metal African Steel Products Ltd. (the company) on an originating summons for a declaration that he has the sole right to take over and control all the assets of the company without interference, obstruction, or hindrance, having been appointed as Receiver/Manager over the assets of the company.
The Court overruled the preliminary objection and held that the respondent had the right to sue in his own name and that the suit disclosed a reasonable cause of action, upon which it dismissed the preliminary objection.
Dissatisfied with the decision of the trial Court, the appellants appealed to the Court of Appeal.
ISSUE(S):
The appeal was determined on merit.
DECISION/HELD:
On the whole, the Court of Appeal allowed the appeal. Consequent upon this, the Court struck out the Respondent’s suit before the trial Court.
RATIO(S):
• COMPANY LAW – RECEIVER/MANAGER – Status of a company in receivership; whether a Receiver/Manager can maintain an action in his personal name
• ACTION – LOCUS STANDI – What the Court considers in determining whether a plaintiff has locus standi
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