(2019) lpelr-46940(ca) · eight garnishees while the 1st, 3rd, 4th and 7th garnishees were...
TRANSCRIPT
TREASURE LINE INTERLINK LTD v. TAOREED
CITATION: (2019) LPELR-46940(CA)
In the Court of AppealIn the Ibadan Judicial Division
Holden at Ibadan
ON FRIDAY, 15TH MARCH, 2019Suit No: CA/IB/315/2011
Before Their Lordships:
JIMI OLUKAYODE BADA Justice, Court of AppealHARUNA SIMON TSAMMANI Justice, Court of AppealFOLASADE AYODEJI OJO Justice, Court of Appeal
BetweenTREASURE LINE INTERLINK LIMITED - Appellant(s)
AndAKINOLA OLABODE TAOREED - Respondent(s)
RATIO DECIDENDI
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1. PRACTICE AND PROCEDURE - SERVICE OF COURT PROCESS(ES): Whether service oforiginating process(es) is a pre-condition to the exercise of jurisdiction by the Court; effect of animproper service"The question that comes to mind at this juncture is whether the lower Court had thejurisdictional competence to entertain the Respondent's suit and enter Judgment when theservice of Originating Process is defective.It is settled law that service of Originating Process on a party to a proceeding is a fundamentaland imperative step in the process of adjudication by a Court of law. It is what ignites or givesvent to the jurisdiction of the Court to entertain the matter and make order that will be validand subsisting. Therefore it is not an issue of exercise of discretion by the Court because whereOriginating Process is not served in accordance with the law, it deprives the Court of therequisite jurisdiction to proceed with the hearing of the matter.In the case of - MARK VS. EKE (2004) 5 NWLR PART 865 PAGE 54 the Supreme Court heldamong others that:-"Service of the process especially Originating Process is an essential condition for the Court tohave competence or jurisdiction to entertain the matter. Further failure to comply with thiscondition would render the whole proceeding including Judgment entered and all subsequentproceedings based thereon wholly irregular, null and void."See also - SKENCONSULT (NIGERIA) LTD & ANOTHER VS. UKEY (1981) LPELR - 3072 SC.In this appeal under consideration the Appellant was served by substituted service i.e. bypasting the said processes at the last known place of abode of the business of the Appellantwho was the Defendant at suit G7 Akande Shopping Complex behind Lagos Garage, Sango,Ibadan, Oyo State. It must not be forgotten that the Appellant is a Limited Liability Company.The Company and Allied Matters Act by Section 78 made provision on how to serve documentsgenerally on any company Registered under it. By this a Court Process is served on a companyin the manner provided by the Rules of Court. A service on a company must be at theregistered office of the company, and it is therefore bad and ineffective if it is done at a branchoffice of the company or pasting it at the last known place of abode.A company is not a human being. The appropriate procedure is by giving the OriginatingProcesses to any:-DirectorTrusteeSecretary orOther Principal Officer at the registered office of the company or by leaving the document witha human being who must acknowledge receipt of it by endorsing on the document that it wasleft with him, which was not the case in this appeal under consideration.I am of the view that the service of Originating Processes on the Appellant was not inaccordance with the law.The mode of service ordered by the lower Court constitutes a grave infraction of the lawregulating service of Court Processes on companies.Therefore since the service of the Originating Processes effected on the Appellant was incurablydefective, the Judgment of the lower Court, founded on fundamentally flawed service cannotstand.Consequent upon the foregoing I hold that no proper service was effected on the Appellant. Thislone issue is therefore resolved in favour of the Appellant and against the Respondent."PerBADA, J.C.A. (Pp. 9-11, Paras. B-F) - read in context
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2. PRACTICE AND PROCEDURE - SERVICE OF COURT PROCESS(ES): Whether service ofCourt process is a pre-condition for exercise of jurisdiction by the Court; effect of improperservice of Court process"It is trite that service of Court process (Originating Process Inclusive) is a crucial part of theadjudication process. It is the law that failure to effect service of a Court process where requiredconstitutes a fundamental defect.It goes to the root and lack of same deprives the Court the legal capacity and competence tohear and determine the matter.See EMEKA VS. OKOROAFOR & ORS. (2017) LPELR - 41738 AT 31 -32 PARAGRAHS E-B; OKEKEVS. LAWAL & ORS. (2018) LPELR - 43929 AT 20 - 21 PARAGRAPHS E - E; SHA'ABAN VS. SAMBO(2010) 19 NWLR (PT. 1226) 353 AT 360 PARAGRAPHS D-G and AWONIYI VS. REGISTEREDTRUSTEES OF AMORC (2000) 10 NWLR (PT. 676) 522.In the instant appeal, the Appellant's grouse is that the judgment which gave rise to thegarnishee proceedings was given without jurisdiction because the Originating Processes werenot served in accordance with the law. It is the contention of the Respondent that the Appellant,a Limited Liability Company was served via substituted means in violation of the law. Service ofCourt processes and documents on corporate entities is regulated by the provisions of Section78 of the Companies and Allied Matters Act Cap C20, Laws of the Federation 2004 whichprovides thus:"78. A Court Process shall be served on a company in the manner provided by the rules of Courtand any document may be served on a company by leaving it at or by sending it by post to itsregistered office or head office of the company."Service of Court process on the Appellant, a corporate entity can therefore only be effected byservice of same on any of its directors, secretary, trustee or any of its principal officers and notby substituted means.In the case of MARK VS. EKE (2004) LPELR - 1841 AT 30 PARAGRAPHS A-B Musdapher, JSC heldthus:"The need for substituted service arises because personal service cannot be effected on naturalor juristic persons, the procedure for substituted service cannot be made to a corporation likethe Appellant herein."?It is a settled principle of law that where the law prescribes the method of doing a thing, thatmethod and no other method must be followed. See YAKI VS. BAGUDU (2015) 18 NWLR (PT.1491) 288 AT 348 PARAGRAPHS E - F; SAUDE VS. ABDULLAHI (1989) 4 NWLR (PT. 116) 387 AT422; ADHEKEGBA VS. MINISTER OF DEFENCE (2013) 17 NWLR (PT. 1382) 126 AT147,PARAGRAPHS D -F.Proper service of an originating process is a condition precedent for the exercise of a Court'sjurisdiction in a matter. In DURBAR HOTEL PLC VS. ITYOUGH & ORS. (2016) LPELR - 42560 AT 7PARAGRAPHS A - F, the Supreme Court per Rhode-Vivour JSC held thus:"Indeed in MADUKOLU & ORS. VS. NKEMDILIM (1962) 2 NSCC (PT. 374), this Court Per BairamianJSC made some observation on jurisdiction and the competence of a Court when His Lordshipsaid that a Court is competent when -1. It is properly constituted as regards numbers and qualifications of the members of the bench,and no members is disqualified for one reason or another;and2. The subject matter of the case is within the jurisdiction, and there is no feature in the casewhich prevents the Court from exercising its jurisdiction; and3. The case comes before the Court initiated by due process of law, and upon fulfilment of anycondition precedent to the exercise of jurisdiction.See also SLB CONSORTIUM LTD VS. NNPC (2011) 4 SC (PT. 1) PG. 86; NNPC VS. CLIFCO NIG. LTD(2011) 4 SC (PT. 1) PG. 46; DANGANA & ANR. VS. USMAN & 4 ORS. (2012) 2 SC (PT. 111) PG.103."It follows that where a case is commenced before a Court without fulfilling the conditionprecedent, such a Court will lack the requisite competence to hear and determine the matterplaced before it. Failure to effect service of the Originating Processes on the instant Appellant inaccordance with the law robs the lower Court the requisite jurisdiction to entertain the suit and Iso hold. The service on the Appellant vide substituted service is not good service. Thesubsequent judgment and order made by the lower Court in the suit is liable to be set aside."Per OJO, J.C.A. (Pp. 13-16, Paras. B-E) - read in context
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JIMI OLUKAYODE BADA, J.C.A. (Delivering the
Leading Judgment): This appeal emanated from the
Ruling of High Court of Justice Oyo State in the Ibadan
Judicial Division in suit No:- I/508/2009 Between:- MR.
AKINOLA OLABODE TAOREED VS. TREASURE LINE
INTERLINK LTD delivered on the 15th day of June, 2011.
B r i e f l y , t h e f a c t s o f t h e c a s e a r e t h a t t h e
Plaintiff/Claimant/Judgment Creditor now Respondent
before this Court instituted his action against the Appellant
through the summary Judgment procedure. The claim was
for (N48,350,000.00) Forty-Eight Million, Three Hundred
and Fifty Thousand Naira. The Appellant was served the
Court processes through substituted means i.e. by pasting
same on the last known address of the Appellant at suit G7,
Akande Shopping Complex, behind Lagos Garage, Sango
Ibadan. This was done with the leave of Court granted on
the 19th of February 2010.
The lower Court entered Judgment in favour of the
Respondent on the 15th of March 2010 after Appellant had
failed to defend the suit within the time allowed by the
Rules of the Court.
The Respondent initiated Garnishee Proceedings against
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eight Garnishees while the 1st, 3rd, 4th and 7th Garnishees
were discharged by the lower Court, the Garnishee Order
Nisi issued by the lower Court against the 2nd and 6th
Garnishees were made absolute on the 13th of April 2011.
The Appellant later filed application to set aside the
Judgment of the lower Court.
The lower Court heard the application and delivered its
Ruling dismissing the application 15/6/2011.
The Appellant who is dissatisfied with the said Ruling of the
lower Court appealed to this Court.
The learned Counsel for the Appellant formulated seven
issues for the determination of this appeal.
The said issues are reproduced as follows:-
“(A) Is a trial Court at liberty to pick and choose what
legal issues raised by a litigant before it to address.
(B) Whether the service of the Originating Process of
Court on the Appellant (a Limited Liability Company)
by substituted means to wit, by pasting at the last
premises of the last known address of the Appellant,
was valid at law.
(C) Must a Judgment Debtor who has no notice of the
action be shut out simply because there is a proof of
service on him in the Court’s file.
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(D) Whether a party to a contract that suffers
frustration before performance is still entitled to his
rights and obligations under the contract,
(E) Whether the Garnishee Proceedings are absolute
under any circumstances once commenced.
(F) Whether a trial Court is at liberty to interpolate
legal issues not raised by the parties before it.
(G) Is it competent for a trial Court to pronounce on
pleadings that are not before it.”
The learned Counsel for the Respondent on the other hand
formulated a single issue for the determination of the
appeal. The said issue is reproduced as follows: -
“Whether the learned trial Judge was wrong in
dismissing the Defendant/Appellant’s application to
set aside the Judgment delivered against it on the
15th day of March 2010.”
At the hearing of this appeal on 6/2/2019 the learned
Counsel for the Appellant stated that the appeal is against
the Ruling of the High Court of Justice, Oyo State, Ibadan
Division delivered on the 15th of June 2011. The Notice of
Appeal was filed 16/6/2011 and the Record of Appeal was
t r a n s m i t t e d o n 3 0 / 1 1 / 2 0 1 1 a n d d e e m e d a s
properly transmitted on 11/1/2018.
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The Appellant’s Brief of Argument was filed on 3/5/2013
and deemed as properly filed on 11/1/18.
The learned Counsel for the Appellant also filed the
Appellant’s Reply Brief of Argument on 30/10/18 in
response to the Respondent’s Brief.
He relied on both the Appellant’s Brief of Argument as well
as the Appellant’s Reply Brief of Argument as his argument
in urging that this appeal be allowed.
The learned Counsel for the Respondent in his own case
also referred to the Respondent’s Brief of Argument filed
on 23/5/2018 which was deemed as properly filed on
16/10/2018.
He adopted and relied on the said Respondent’s Brief of
Argument as his argument in this appeal and he urged that
the appeal be dismissed.
I have carefully gone through the issues formulated for the
determination of the appeal by Counsel for both parties.
The sole issue formulated on behalf of the Respondent
captured the fulcrum upon which the appeal rested. I will
therefore rely on the said Respondent’s issue for the
determination of the appeal.
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ISSUE FOR THE DETERMINATION OF THE APPEAL.
“Whether the learned trial Judge was wrong in
dismissing the Defendant/Appellant’s application to
set aside the Judgment delivered against it on the
15th day of March 2010.” (Distilled from grounds 1
and 2).
The learned Counsel for the Appellant stated that the
service of the Originating Process of the Court was ordered
to be carried out on the Appellant (a Limited Liability
Company) by substituted means to wit by pasting at the last
known place of abode of the business of the Defendant at
suit G7, Akande Shopping Complex behind Lagos Garage
Sango, Ibadan, Oyo State.
He contended that by the Provisions of Section 78 of the
Companies and Allied Matters Act (CAMA) Court processes
can only be served on a Limited Liability Company by
delivering same to the Director, Secretary or other
Principal Officer or by leaving it at the office. He stated
that the clear import of this Provision is that you can only
leave the said process at an operative office where there
are company Staff and other Officials and not at an office
that is closed down for whatever reasons. He relied on the
case of: -
MARK VS EKE (2004) 5 NWLR PART 865 PAGE 54
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He submitted that the combined effect of Section 78 of the
Companies and Allied Matters Act and the Supreme Court
authority of MARK VS EKE (Supra) is that the service of
the processes of Court in this Appeal on the Appellant, a
limited liability company by substituted means is wrong.
The learned Counsel for the Respondent in his own
response submitted that the Judgment entered against the
Appellant on 15/3/2010 by the lower Court is a final
Judgment or Judgment obtained on merit, but not a default
Judgment.
He relied on the following cases:-
JOE-DEB VENTURES LTD VS NDIC (2015) ALL FWLR
PART 780 PAGE 1323 AT PAGE 1338 PARAGRAPHS
B-D,
UMO VS UDONWA (2014) ALL FWLR PAGR 721 PAGE
1604 AT 1617 PARAGRAPH B.
The learned Counsel for the Respondent contended that the
Appellant was served with the Originating Process of the
lower Court by substituted means. He stated that the
processes were pasted on the last known office address of
the Appellant at Suit G7, Akande Shopping Complex behind
Lagos Garage, Sango, Ibadan Oyo State on the 19th day of
February 2010.
He argued further that the Appellant absconded from its
lastknown office address to an undisclosed location
(without any forwarding address) after collecting huge
sums of money from many investors. He relied on the
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(2014) ALL FWLR PART 739 PAGE 1097 AT PAGE
1119 PARAGRAPHS A-F.
CALHORIE LTD VS INTER CONTINENTAL BANK PLC
(2014) ALL FWLR PART 723 PAGE 195.
It was submitted further that when the Appellant argued
that the amount the Respondent claimed was in excess but
failed to state the actual amount it owed the Respondent.
He went further in his submission that the Appellant does
not have a good defence.
He relied on the following cases:- EPE LOCAL GOVT. VS
KESHINRO (2009) ALL FWLR PART 473 PAGE 1257.
OBULOR VS OBORO (2001) FWLR PART 47 PAGE
1004.
U G W U A G B A G . B . L T D V S N W E D I G B O
INTERNATIONAL VENTURES LTD (2014) ALL FWLR
PART 746 PAGE 548.
NISHIZAWA LTD VS JETHWANI (1984) 12 SC PAGE
234.
TAHIR V. UDEAGBALA HOLDINGS LTD(2005) ALL
FWLR PART 240 PAGE 120
VASWANI VS CANDIDE–JOHNSON (2000) 11 NWLR
PART 679 PAGE 582.
NITEL PLC VS I.C.I (DIRECTORY PUBLISHERS) LTD
(2009) 16 NWLR PART 1167 PAGE 356.
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It was also submitted on behalf of the Respondent that the
Appellant is a total stranger to the garnishee proceedings
therefore he lacks the locus standi to pray the lower Court
to stay execution of the garnishee order absolute. He also
relied on the following cases:-
UNITED BANK OF AFRICA PLC VS EKANEM (2010) 6
NWLR PART 1190 PAGE 207.
PURIFICATION TECHNIQUES NIG LTD VS AT. GEN.
LAGOS STATE (2004) 9 NWLR PART 879 PAGE 665.
The learned Counsel for the Respondent finally urged this
Court to hold that the lower Court was right in dismissing
the Appellant’s application for setting aside Judgment
delivered on the 15th March 2010.
In the Appellant’s reply brief of argument he merely
reiterated his earlier submission.
It is not in dispute that the Originating Process in this case
at the lower Court was served on the Appellant (a Limited
Liability Company) by substituted means i.e. by pasting at
the last known place of abode of the business of the
Appellant.
It was contended on behalf of the Appellant that the said
service is bad in law. But the learned Counsel for the
Respondent stated that the Appellant was served with the
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Originating Processes at the lower Court via substituted
means. The said Court Processes were pasted on the last
known office address of the Appellant at suit G7, Akande
Shopping Complex behind Lagos Garage, Sango, Ibadan
Oyo State on 19/2/2010.
The question that comes to mind at this juncture is whether
the lower Court had the jurisdictional competence to
entertain the Respondent’s suit and enter Judgment when
the service of Originating Process is defective.
It is settled law that service of Originating Process on a
party to a proceeding is a fundamental and imperative step
in the process of adjudication by a Court of law. It is what
ignites or gives vent to the jurisdiction of the Court to
entertain the matter and make order that will be valid and
subsisting. Therefore it is not an issue of exercise of
discretion by the Court because where Originating Process
is not served in accordance with the law, it deprives the
Court of the requisite jurisdiction to proceed with the
hearing of the matter.
In the case of – MARK VS. EKE (2004) 5 NWLR PART
865 PAGE 54 the Supreme Court held among others that:-
“Service of the process especially Originating Process
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is an essential condition for the Court to have
competence or jurisdiction to entertain the matter.
Further failure to comply with this condition would
render the whole proceeding including Judgment
entered and all subsequent proceedings based
thereon wholly irregular, null and void.”
See also – SKENCONSULT (NIGERIA) LTD &
ANOTHER VS. UKEY (1981) LPELR – 3072 SC.
In this appeal under consideration the Appellant was
served by substituted service i.e. by pasting the said
processes at the last known place of abode of the business
of the Appellant who was the Defendant at suit G7 Akande
Shopping Complex behind Lagos Garage, Sango, Ibadan,
Oyo State. It must not be forgotten that the Appellant is a
Limited Liability Company.
The Company and Allied Matters Act by Section 78 made
provision on how to serve documents generally on any
company Registered under it. By this a Court Process is
served on a company in the manner provided by the Rules
of Court. A service on a company must be at the registered
office of the company, and it is therefore bad and
ineffective if it is done at a branch office of the company or
pasting it at the last known place of abode.
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A company is not a human being. The appropriate
procedure is by giving the Originating Processes to any:-
Director
Trustee
Secretary or
Other Principal Officer at the registered office of the
company or by leaving the document with a human being
who must acknowledge receipt of it by endorsing on the
document that it was left with him, which was not the case
in this appeal under consideration.
I am of the view that the service of Originating Processes
on the Appellant was not in accordance with the law.
The mode of service ordered by the lower Court constitutes
a grave infraction of the law regulating service of Court
Processes on companies.
Therefore since the service of the Originating Processes
effected on the Appellant was incurably defective, the
Judgment of the lower Court, founded on fundamentally
flawed service cannot stand.
Consequent upon the foregoing I hold that no proper
service was effected on the Appellant. This lone issue is
therefore resolved in favour of the Appellant and against
the Respondent.
In the result with the resolution of this lone issue for
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determination in this appeal in favour of the Appellant and
against the Respondent, it is my view that there is merit in
this appeal and it is allowed.
In the circumstance, the Judgment of the lower Court in
suit No. – I/508/2009 – MR. AKINOLA OLABODE
TAOREED VS. TREASURE LINE INTERLINK LTD
delivered on 15/3/2010 and the Ruling delivered on
15/6/2011 are hereby set aside. In its place this suit is
hereby sent to the Chief Judge of Oyo State who shall
assign the suit to another Judge who will hear the suit on
its merit.
There shall be no order as to costs. Each of the parties are
to bear their own costs.
Appeal allowed.
HARUNA SIMON TSAMMANI, J.C.A.: I read in advance
the judgment delivered by my learned brother, Jimi
Olukayode Bada, JCA.
My learned brother has comprehensively considered and
resolved the lone issue that came up for determination in
this appeal. I agree with the reasoning and conclusion
arrived at by my learned brother.
I therefore agree that there is merit in this appeal. It is
accordingly allowed. I abide by the consequential orders
made therein including the order on costs.
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FOLASADE AYODEJI OJO, J.C.A.: I have had the privilege
to read before now the judgment just delivered by my
learned brother, Jimi Olukayode Bada, JCA and I agree with
the reasoning and conclusion therein.
It is trite that service of Court process (Originating Process
Inclusive) is a crucial part of the adjudication process. It is
the law that failure to effect service of a Court process
where required constitutes a fundamental defect.
It goes to the root and lack of same deprives the Court the
legal capacity and competence to hear and determine the
matter.
SeeEMEKA VS. OKOROAFOR & ORS. (2017) LPELR -
41738 AT 31 -32 PARAGRAHS E-B; OKEKE VS.
LAWAL & ORS. (2018) LPELR - 43929 AT 20 - 21
PARAGRAPHS E - E; SHA'ABAN VS. SAMBO (2010) 19
NWLR (PT. 1226) 353 AT 360 PARAGRAPHS D-G and
AWONIYI VS. REGISTERED TRUSTEES OF AMORC
(2000) 10 NWLR (PT. 676) 522.
In the instant appeal, the Appellant's grouse is that the
judgment which gave rise to the garnishee proceedings was
given without jurisdiction because the Originating
Processes were not served in accordance with the law. It is
the
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contention of the Respondent that the Appellant, a Limited
Liability Company was served via substituted means in
violation of the law. Service of Court processes and
documents on corporate entities is regulated by the
provisions of Section 78 of the Companies and Allied
Matters Act Cap C20, Laws of the Federation 2004 which
provides thus:
"78. A Court Process shall be served on a company in
the manner provided by the rules of Court and any
document may be served on a company by leaving it
at or by sending it by post to its registered office or
head office of the company."
Service of Court process on the Appellant, a corporate
entity can therefore only be effected by service of same on
any of its directors, secretary, trustee or any of its principal
officers and not by substituted means.
In the case ofMARK VS. EKE (2004) LPELR - 1841 AT
30 PARAGRAPHS A-B Musdapher, JSC held thus:
"The need for substituted service arises because
personal service cannot be effected on natural or
juristic persons, the procedure for substituted service
cannot be made to a corporation like the Appellant
herein."
It is a settled principle of law that where the law prescribes
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the method of doing a thing, that method and no other
method must be followed. See YAKI VS. BAGUDU (2015)
18 NWLR (PT. 1491) 288 AT 348 PARAGRAPHS E - F;
SAUDE VS. ABDULLAHI (1989) 4 NWLR (PT. 116) 387
AT 422; ADHEKEGBA VS. MINISTER OF DEFENCE
( 2 0 1 3 ) 1 7 N W L R ( P T . 1 3 8 2 ) 1 2 6 A T
147,PARAGRAPHS D -F.
Proper service of an originating process is a condition
precedent for the exercise of a Court's jurisdiction in a
matter. In DURBAR HOTEL PLC VS. ITYOUGH & ORS.
(2016) LPELR - 42560 AT 7 PARAGRAPHS A - F, the
Supreme Court per Rhode-Vivour JSC held thus:
"Indeed in MADUKOLU & ORS. VS. NKEMDILIM
(1962) 2 NSCC (PT. 374), this Court Per Bairamian
JSC made some observation on jurisdiction and the
competence of a Court when His Lordship said that a
Court is competent when —
1. It is properly constituted as regards numbers and
qualifications of the members of the bench, and no
members is disqualified for one reason or another;
and
2. The subject matter of the case is within the
jurisdiction, and there is no feature in the case which
prevents the Court from exercising its jurisdiction;
and
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3. The case comes before the Court initiated by due
process of law, and upon fulfilment of any condition
precedent to the exercise of jurisdiction.
See also SLB CONSORTIUM LTD VS. NNPC (2011) 4
SC (PT. 1) PG. 86; NNPC VS. CLIFCO NIG. LTD (2011)
4 SC (PT. 1) PG. 46; DANGANA & ANR. VS. USMAN &
4 ORS. (2012) 2 SC (PT. 111) PG. 103."
It follows that where a case is commenced before a Court
without fulfilling the condition precedent, such a Court will
lack the requisite competence to hear and determine the
matter placed before it. Failure to effect service of the
Originating Processes on the instant Appellant in
accordance with the law robs the lower Court the requisite
jurisdiction to entertain the suit and I so hold. The service
on the Appellant vide substituted service is not good
service. The subsequent judgment and order made by the
lower Court in the suit is liable to be set aside.
It is in the light of the foregoing and the fuller reasons
given in the lead judgment delivered by my learned brother
Jimi Olukayode Bada, JCA that I also find merit in this
appeal and allow it. I abide by the consequential orders
made in the lead judgment.
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