CASE TITLE: CBN v. IKPILA & ANOR (2024) LPELR-61618(CA)
JUDGMENT DATE: 9TH FEBRUARY, 2024
PRACTICE AREA: PRACTICE AND PROCEDURE (Garnishee Proceeding)
LEAD JUDGMENT: ITA GEORGE MBABA, J.C.A.
SUMMARY OF JUDGMENT:
INTRODUCTION:
This appeal borders on Garnishee Proceedings.
FACTS:
This appeal is against the decision of the Federal High Court, Jalingo, in Suit No. FHC/TAR/CS/4/2014, delivered on February 24, 2016.
At the trial, the counsel for the judgment creditors had urged the Court to make the Order and the 1st Garnishee was not opposing.
On November 18, 2015, the judgment creditors/Applicants took out the suit against the Inspector General of Police and 3 others as judgment debtors, and the Central Bank of Nigeria (CBN) and 5 others (namely First Bank PLC, Zenith Bank PLC, UBA PLC, Fidelity Bank PLC, and Diamond Bank PLC) as Garnishees, seeking:
- (1) An Order awarding post-judgment, interest at the rate of 10% per annum against the Respondents from May 19, 2014 (the date of judgment) until the judgment sum is fully paid.
- (2) An Order Nisi attaching the funds of the judgment debtors with the 2nd Garnishee including but not lim.ited to funds in accounts No. 2017655572, 2017692469, 2001120060, and 2018513165.
- (3) An Order Nisi attaching the funds of the judgment debtor with the 1st, 3rd, and 6th Garnishees.
- (4) An Order in the interim restraining the Garnishees from paying out monies from funds/accounts maintained and/or controlled by the judgment debtors, except the judgment debt is deposited in Court within 8 days from the date of service of the Order Nisi or pending when the garnishees shall show cause; and for
- (5) Any other Order or Orders that the Honourable Court may deem fit to make.
The Order Nisi was made by the Court on November 23, 2015. The trial Court then entered Garnishee Order Absolute against the 1st Garnishee (CBN) in the sum of N16,600.000 (Sixteen Million, Six Hundred Thousand Naira) and awarded a cost of N200,000 (Two Hundred Thousand Naira) only against it. The 2nd and 4th Garnishees (1st Bank of Nigeria and United Bank for Africa) were discharged.
Dissatisfied, the Appellant appealed.
The Respondents filed a Notice of Preliminary Objection praying that the appeal be dismissed for abuse of the Court process and that the Court lacks jurisdiction to entertain or continue to adjudicate over it.
ISSUE(S) FOR DETERMINATION:
The Court considered the merits of the preliminary objection.
The substantive appeal was also considered on the following issues:
- Was the trial Judge right to order the Order Nisi, Absolute, in the circumstances of this case, in which oral evidence of the Appellant and Exhibit B admitted that Appellant was in custody of the funds of the Judgment Debtors as per the Treasury Single Account (T.S.A.) in its custody?
- Was the consent of the Attorney General of the Federation necessary to file the Garnishee proceedings and to enforce the Judgement of the trial Court?
DECISION/HELD:
In the final analysis, the Preliminary Objection was upheld, and the appeal was accordingly struck out. The Court also found the substantive appeal unmeritorious, and the same was dismissed.
RATIOS:
- COURT- DUTY OF COURT: Duty of court to strictly guard its jurisdiction
- JUDGMENT AND ORDER- ORDER OF COURT: Whether an order of court must be obeyed
- PRACTICE AND PROCEDURE- PRELIMINARY OBJECTION: Effect of the success of a preliminary objection to the hearing of an appeal
- PRACTICE AND PROCEDURE- PRELIMINARY OBJECTION: Appropriate prayer to make when challenging a preliminary objection
- PRACTICE AND PROCEDURE- GARNISHEE PROCEEDINGS: Nature of garnishee proceedings
- PRACTICE AND PROCEDURE- GARNISHEE PROCEEDINGS: Role of a garnishee in a garnishee proceeding
- PRACTICE AND PROCEDURE- GARNISHEE PROCEEDINGS: Whether a garnishee can raise issues/objection in defence or on behalf of the judgment debtor
- PRACTICE AND PROCEDURE- GARNISHEE PROCEEDINGS: Instance where the consent of the Attorney-General will not be needed before instituting a garnishee proceeding
- PRACTICE AND PROCEDURE- GARNISHEE PROCEEDINGS: Whether the consent of the Attorney General is required to enforce an unappealed judgment obtained in a garnishee proceeding
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