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FIRST BANK OF NIGERIA PLC V. YEGWA (2023)

case summary

Supreme Court of Nigeria

Before Their Lordships:

  • Kekere-Ekun JSC (Presided)
  • John Inyang Okoro JSC
  • Uwani Musa Abba-Aji JSC (Read the Lead Judgment)
  • Ibrahim Mohammed Musa Saulawa JSC
  • Tijjani Abubakar JSC

Parties:

Appellant:

  • First Bank of Nigeria Plc

Respondents:

  • Alhaji Ali Baba Yegwa
  • Inspector General of Police
  • Commissioner of Police, Cross River State
Suit number: SC. 982/2018

Background

This case arose from a garnishee proceeding initiated by the 1st respondent, Alhaji Ali Baba Yegwa, against First Bank of Nigeria Plc following a judgment that awarded damages to the respondent for breach of fundamental rights.

After the ruling on damages, the respondent sought to enforce this judgment via garnishee proceedings, resulting in an attachment (order nisi) issued against the appellant to pay the funds held in the account of the judgment debtor. The appellant, who was aware of the funds in the debtor's custody, claimed that multiple court orders had already attached these funds.

Issues

The principal issues for determination included:

  1. Whether the appellant’s failure to annex the statement of account relevant to the garnishee proceedings warranted the making of the garnishee order absolute.
  2. Whether the appellant discharged its burden of proof regarding funds in its possession for the judgment debtors.

Ratio Decidendi

The court affirmed that:

  1. The onus lies on the party who asserts to prove their claims; thus, without the required documentation (statement of account), the garnishee proceedings will be made absolute.
  2. The existence of enrolled court orders, while relevant, does not automatically suffice as proof of the judgment debtor's financial situation without necessary supporting documents.

Court Findings

The court found:

  • The appellant's affidavit to show cause lacked the necessary detail, particularly failing to exhibit the statement of account No. 2006404147, which was critical in determining whether the appellant had a valid defense against the order nisi.
  • Previous enrolled orders could not be used as evidence to show the absence of funds in the garnishee's possession since the burden remains on the appellant to prove non-availability of said funds.

Conclusion

The Supreme Court dismissed the appeal, emphasizing that the lack of the statement of account was detrimental to the appellant’s case. The court underscored the necessity for banks and garnishees to provide comprehensive disclosures during garnishee proceedings to facilitate effective judicial processes, thus reinforcing the legal obligations surrounding such proceedings.

Significance

This ruling highlights the critical nature of proper documentation in garnishee proceedings and delineates the responsibilities of banks acting as garnishees. Failure to adequately document and prove financial assertions can result in unfavorable outcomes for financial institutions involved in such legal processes, ultimately serving as a precedent for adherence to procedural rigor in garnishee cases.