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BACKBONE CONNECTIVITY NETWORK NIGERIA LIMITED & ORS V. BACKB (2021)

case summary

Supreme Court of Nigeria

Before Their Lordships:

  • Musa Dattijo Muhammad JSC
  • Chima Centus Nweze JSC
  • Uwani Musa Abba-Aji JSC
  • Adamu Jauro JSC
  • Emmanuel Akomaye Agim JSC

Parties:

Appellants:

  • Backbone Connectivity Network Nigeria Limited
  • 1st - 17th Appellants

Respondents:

  • Backbone Technology Network Inc.
  • 1st & 2nd Respondents
Suit number: SC. 656/2014

Background

This case arises from a legal dispute initiated in the Federal High Court, Abuja, where the respondents filed a civil action against the 1st to 17th appellants. They sought several court orders, including the submission of audited accounts, restructuring of shareholding based on a 2004 agreement, and the payment of accrued profits and dividends. The appellants opposed this by filing for a stay of proceedings, seeking to refer the matter to arbitration and to dismiss the suit, asserting it was incompetent.

Initially, the trial court granted a partial relief by referring the parties to arbitration but dismissed the motion to dismiss the suit, leading to the appellants' dissatisfaction and subsequent appeal to the Court of Appeal. The Court of Appeal allowed the appeal in part, prompting the appellants to further appeal to the Supreme Court.

Issues

The central issue before the Supreme Court was whether the appellants' appeal against an interlocutory decision was competent, considering it was filed after the 14-day statutory window prescribed for such appeals in section 27(2)(a) of the 1999 Constitution.

Ratio Decidendi

The Supreme Court, led by Justice Nweze, ruled that since the appeals were filed outside the prescribed period without the requisite leave, the appeal was incompetent. The court emphasized the absolute necessity of obtaining leave in cases involving interlocutory decisions.

  1. The nature of the challenge required a determination of jurisdiction through preliminary objection before proceeding with the merits of the appeal.
  2. The court reaffirmed the principles established in previous cases regarding what constitutes final versus interlocutory decisions, stating that if the rights of the parties are yet to be resolved, the order is interlocutory.
  3. Key provisions of the Supreme Court Act stipulate a 14-day window for appeals against interlocutory decisions.
  4. The appellants failed to comply with the stipulated timeframe, and no application for extension was made, rendering their appeal fundamentally flawed.

Court Findings

The Supreme Court found that:

  1. The lower court's decision was indeed interlocutory because it neither concluded nor determined the rights of the parties.
  2. The preliminary objection raised by the respondents was valid, ensuring that the issues of competency were addressed prior to the merits of the appeal.
  3. The appellants’ failure to file their appeal within 14 days, alongside their failure to seek leave for extension, rendered their appeal illegitimate.
  4. The court referenced relevant case law, underscoring that appeals filed out of time without leave become non-justiciable.

Conclusion

The Supreme Court concluded by upholding the respondents' preliminary objection and striking out the appellants' appeal due to incompetence, indicating that the appeal had no viable legal foundation within the stipulated legislative framework.

Significance

This case highlights critical procedural aspects surrounding interlocutory appeals in Nigeria, reaffirming the necessity of adhering strictly to timelines and protocols for appealing decisions, ensuring that litigants understand and follow procedural rules to avoid dismissal of their cases on technical grounds.

Counsel:

  • Dr. Olumide Ayeni, SAN
  • Etukwu Onah, Esq.