ALHAJI AMINU ISHOLA V. UNION BANK OF NIGERIA LIMITED (2005)

CASE SUMMARY

Supreme Court of Nigeria

Before Their Lordships:

  • Salihu Modibbo Alfa Belgore JSC
  • Umaru Atu Kalgo JSC
  • Dahiru Musdaphar JSC
  • Dennis Onyejife Edozie JSC
  • Sunday Akinola Akintan JSC

Suit number: SC. 125/1996

Delivered on: 2005-02-18

Parties:

Appellant:

  • Alhaji Aminu Ishola (Substituted by Mr. Abdul Ganiyu Ishola)

Respondent:

  • Union Bank of Nigeria Limited

Background

This case arose from a legal dispute between Alhaji Aminu Ishola and Union Bank of Nigeria Limited regarding a loan secured by a mortgage on Ishola's property. In 1982, Ishola borrowed N250,000 as an overdraft facility and mortgaged his five-storey building in Ilorin as security. After failing to repay the loan, the bank moved to recover the amount, prompting Ishola to seek an injunction to prevent the sale of his property, arguing the mortgage was illegal. The trial court ruled in Ishola's favor, granting him various declarations and an award of N594,417.17.

Issues

The Supreme Court examined several key issues, including:

  1. The relevance of the earlier case, Union Bank of Nigeria Limited vs. Ozigi, to the present case.
  2. The legality of the mortgage and whether this issue was properly raised.
  3. The appellate court's interference with the findings of the trial court.

Ratio Decidendi

The court concluded:

  1. Findings by the trial court are typically protected unless proven to be perverse or unsupported by evidence.
  2. Issues of illegality regarding the mortgage must be specifically pleaded, and raising them at trial without prior notice to the other party constituted an impropriety.
  3. The evidence presented by Ishola failed to meet the burden of proof required in civil cases.

Court Findings

The Supreme Court found that:

  1. The Court of Appeal properly evaluated the evidence and found the trial court's findings on the mortgage to be unsupported.
  2. The trial court erroneously raised issues regarding the legality of the mortgage that were not pleaded by the parties, violating procedural justice.
  3. The earlier ruling in Ozigi was applicable and guided the Court of Appeal's decision.

Conclusion

The appeal was dismissed, with the Supreme Court affirming the Court of Appeal’s decision, ruling that the trial court erred in its judgment. The bank was to recover the costs incurred.

Significance

This judgment reinforces the importance of proper pleading in legal proceedings and the adherence to established judicial principles concerning the evaluation of evidence and legal interpretations.

Counsel:

  • Alhaji Aliyu A. Salman SAN (with Segun Idowu Esq.) for the Respondent

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