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Case Digest

TILLEY GYADO & CO (NIG.) LTD V. ACCESS BANK PLC (2019)

Court of Appeal (Jos Division)

Coram
  • H. A. O. Abiru JCA
  • Mudashiru Nasiru Oniyangi JCA
  • Bolounkorumo Moses Ugo JCA
Parties

Appellant:

  • Tilley Gyado & Co (Nig.) Ltd

Respondents:

  • Access Bank Plc
  • Senator Jacob Tilley-Gyado
  • Assets Management Corporation of Nigeria
Suit number
CA/J/102/2012
Delivered on

Background

The case revolves around Tilley Gyado & Co (Nig.) Ltd, which had entered into an overdraft agreement with Access Bank Plc, initially under its former name of Intercontinental Bank Plc. The company failed to repay the overdraft, which was granted on the basis of a legal mortgage and personal guarantee from Senator Jacob Tilley-Gyado. The bank's claims eventually led to a lawsuit under the undefended list procedure in the High Court of Plateau State seeking N153,929,414.06 as the outstanding balance.

Issues

The Court of Appeal was tasked with determining the following issues:

  1. Whether the lower court was correct to enter judgment in favor of the 1st respondent for N91,481,560.49.
  2. Whether the 1st respondent had the requisite locus standi to maintain the suit after the assignment of the debt to the 3rd respondent.

Ratio Decidendi

The court ruled that:

  1. The appellant admitted owing the sum of N91,481,560.49, as evidenced by the lack of response to the demand letter from Access Bank.
  2. Even after the assignment of debt to the 3rd respondent, the 1st respondent retained the right to initiate action for recovery.

Court Findings

The Court of Appeal confirmed that:

  1. The lower court's judgment for the admitted sum was proper and does not require a full trial before entering judgment.
  2. The notion of locus standi was satisfied as the bank acted within its rights in pursuing the claim against the appellant.

Conclusion

The Court of Appeal dismissed the appeal, affirming the lower court’s decision. The ruling to enter judgment for the admitted sum was deemed lawful, and the procedural steps adhered to.

Significance

This ruling underscores the importance of timely responses to business communications and establishes the legal principle that an admission of debt simplifies recovery avenues in litigated matters. Moreover, it clarifies conditions under which a plaintiff can maintain locus standi, particularly in cases of debt assignments, reinforcing the doctrine of privity of contract.

Counsel

Counsel:

  • Professor A. S. Shaakar
  • Solomon Umoh SAN
  • L. E. Anyia, Esq.