Jaiz Bank receives Court of Appeal judgment setting aside dismissal of N226 million annulment suit filed against Capricorn Digital

The Court of Appeal in Abuja has overturned the decision of the Federal Capital Territory High Court dismissing Jaiz Bank’s N226 million annulment suit against Capricorn Digital Limited.

The appeal, which was decided on 5 November 2024, was brought by the legal team of Jaiz Bank Plc and Ammasco International Limited (Appellants) against the financial institution and Capricorn Digital Limited (Defendants). Objection Number: CA/ABJ/CV/351/2023.

In court documents reviewed exclusively by Nairametrics, Jaiz Bank disagreed with the decision of Justice Bello Kawu, who upheld Capricorn’s preliminary objection to the case and dismissed the case for gross abuse of judicial process.

Facts of the Case

• Jaiz Bank and Ammasco had sought a single relief, asking the Court to order the cancellation of the sum of N226,250,000 transferred from the account of Ammasco, resident of Jaiz Bank, to the account of the second defendant (Capricorn), resident therein. Garanti Güven Bankası Ltd.
• It was claimed that part of this sum “A series of fraudulent withdrawals” Made from Ammasco’s account at Jaiz Bank between 24-25 September 2021.
• Capricorn’s legal team had urged the lower court to dismiss the case on the grounds of abuse of court process, arguing that Jaiz Bank had previously filed an ex parte application with the Magistrate’s Court seeking cancellation of the same amount.
• Capricorn claimed that the case in the lower court was filed during the trial in the Magistrates’ Court.
• On February 15, 2023, the lower court, presided over by Justice Bello Kawu, accepted Capricorn’s view that Jaiz Bank’s legal case constituted a plurality of lawsuits and was an abuse of court process and dismissed the case.

Dissatisfied with the decision, Jaiz Bank’s lawyer, Onochie C. Onwuegbuna Esq., approached the Court of appeal, arguing that N226,250,000 has been in the custody of Capricorn since September 2021 and the appellants have failed to recover the money. dismissal of their cases.

He emphasized that if a party alleges abuse of the court process, facts supporting such a claim must be presented to the court through affidavits and documentary evidence.

He rejected the claim of “multiplicity of cases”, stating that as of October 7, 2021, there was no evidence before the court regarding the hearing of another case on the same issue.

“My noble Lords, we respectfully submit that the evidence adduced by the second respondent (Capricorn) to the lower court in support of its preliminary objection falls short of what is required, as there is no evidence to prove that another case is pending. As of October 7, 2021 Suit No: FCT/HC/BW/CV/281/2021 “A lawsuit has been filed,” he said, and asked the court of appeal to annul the decision of the first instance court.

In response, Capricorn’s lawyer, Mobolaji Kuti Esq., on September 27, 2021, filed an ex parte application with the appellants in the Magistrate’s Court in Abuja, FCT, denouncing GTB and Capricorn, on Ammasco’s account, before the Magistrate’s Court filed the application on September 29. It was stated that he accepted it in 2021.

Kuti said that while the case was still pending in the Criminal Court of Peace, those who filed an appeal “simultaneously” abused the court process by filing the current case (leading to this appeal) in the lower court on October 7, 2021, involving the same parties and the same subject matter.

“While the case in the Magistrates Court and the ex parte decisions made in this case were pending, the appellants continued to abuse the process by suing the court to make similar ex parte decisions on the same matter on October 21, 2021. The same parties,” Kuti argued.

Capricorn said it filed a notice of preliminary objection with the FCT court on November 23, 2021, arguing that the case should be dismissed for abuse of judicial process.

According to Justice Bello Kawu, the court upheld Capricorn’s appeal in its judgment on February 15, 2023.

What the Court of Appeals Said

• In its decision, delivered virtually on November 5, 2024, the three-judge panel of the Supreme Court ruled that Capricorn failed to present any evidence showing that a case was continuing in the Magistrates’ Court following the trial on September 29, 2023. When a unilateral order is given.
• The appellate court described Capricorn’s claims as follows: “mere verbal allegations with no evidence.”
• The court ruled that if there was ongoing litigation, Capricorn’s legal team must provide evidence of the next trial date in lower courts.

“It is abundantly clear that Capricorn, which accused Jaiz Bank of abuse of court process, has woefully failed to prove that any case is pending in the Magistrates Court,” the appeal court said.

The appellate court concluded: “I am satisfied that there is no other case pending in any court, particularly the FCT Magistrates Court, which would constitute an abuse of process in the lower court.”

• As a result, the appeal court overturned the lower court’s decision and ordered the case to be sent back to the Supreme Court (FCT) for trial before another judge and determination of the merits.
• Costs of N200,000 were awarded jointly and severally in favor of the appellants and against the respondents.

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