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HOME           14  WEST AFRICA COURT OF APPEAL

 

              

                           WEST AFRICAN COURT OF APPEAL, NIGERIA 

                               Lagos, 27th May, 1952

                 FOSTER-SUTTON, P DE COMARMOND, AG.C.J. (NIGERIA), AND COUSSEY, J.A.

                                                I. M. IDOSU                                                          Appellant

          v.

                                          ABUDU Y. OJIKUTU                                                Respondents

                                                                 

 

IN THE GARNISHEE PROCEEDINGS

                                                  I. M. IDOSU                     V.              D. O. OKORO

AND THE OFFICER IN CHARGE COMMAND PAY.

N. R. YABA: GARNISHEE

IN RE ABUDU Y. OJIKUTU - APPLICANT

Execution-Procedure-Separate judgment debts-Separate applications for garnishment-Application by person claiming interest in amount to be garnished-Magistrates' Courts (Civil Procedure) Ordinance, section 67- Sheriffs, etc., Ordinance (Cap. 205), section 87.

The plaintiff obtained three judgments against the defendant in the Magistrate Court and later made applications to garnish money in the hands of the Army and obtained orders nisi. Some days before these applications were filed Ojiku~ filed an application to be made a party to the garnishee proceedings, under section! 87 of the Sheriffs, etc., Ordinance (Cap. 205). claiming that the money due from the Army had been assigned to him by the defendant, the judgment-debtor This motion and the garnishee orders nisi came up together. The Magistrate first dismissed the applicant's motion to be joined on h\'o grounds-(i) because· the applicant had sworn an affidavit that there were garnishee proceedings before they had begun, and (ii) because it was one motion paper whilst there were three suits not consolidated; nevertheless the Magistrate awarded the judgment creditor and the judgment-debtor, and the garnishee, three sets of costs at ten one and five guineas respectively. Then the Magistrate heard evidence on d garnishment and made the orders absolute in favour of the judgment-creditor although a captain testified for the garnishee to an arrangement that arm~ contracts given to the judgment-debtor should be carried out by Ojikutu (the person who applied to be joined) and that the moneys accruing from the contract should be paid to him.

Later Ojikutu moved under section 10 of the Magistrates' Courts (Appeals Ordinance to set aside the garnishee order absolute and to be made a party to the~ garnishee proceedings; but the Magistrate declined on the ground that the, applicant was not a party to those proceedings and also that he could not review~ his own order.

Ojikutu appealed from this refusal and from the earlier order against him on the ground of injustice and excessive costs. The Supreme Court held that the costs were excessive anti also that the applicant should be admitted into the garnishee proceedings. And the judgment creditor appealed, arguing that under! section 87 of the Sheriffs, etc., Ordinance (Cap. 205), under which the applicant Ojikutu sought to become a party, only the garnishee could inform the Court 0' the claim of a third person and Ojikutu could not make the application himself ' That section 87 reads as follows:-

• .• ·87. Whenever in any proceedings . .') obtain an attachment of a de]) it is suggested by the garnishee that the debt sought to be attached belong! to some third person or that any third person has a lien or charge upon it the court may order such third person to appear and state the nature and particulars of his claim upon such debt." [pg 88]

The Court of Appeal drew attention to section &7 of the Magistrates' Courts

(Civil Procedure) Ordinance which provides that:-                                 •

.• The court may in all causes and matters make any order which it considers necessary for doing justice, whether such order has been expressly asked for by the person entitled to the benefit of the order or not."

Held: (1) Section 87 of the Sheriffs and Enforcement of Judgments and Orders Ordinance (Cap. 205), does not exhaust the powers of the Court: if by any means it comes to the knowledge of the Court that a third person has on reasonable grounds a claim, it is the duty of the Court in equity to withhold a garnishee order absolute and to direct an inquiry. In view of the evidence before the Magistrate it was necessary to have such an inquiry and for that purpose to admit the respondent to this appeal as a party in the garnishee proceedings by making some suitable order, which the Magistrate had power to make under section 67 of the :Magistrates' Courts (Civil Procedure) Ordinance (Cap. 124).

(2) The costs allowed against the respondent to this appeal were inordinate

and unprecedented.

Cases cited:-

(1) Kojo Pon v. Atta Fua; Privy Council Appeal No. 48 of 1925.

(2) Roberts v. Death, 1881, Q.E.D. 319.

Appeal by the judgment-creditor, against the decision of the Supreme Court reversing the orders of the Magistrate in garnishee proceedings, the respondent to the present appeal being a third person who had applied to be made a party:

W.A.C.A. No. 3618.

Appellant in person.

F. R. A. Williams, with him A. O. Lawson, for Respondent.

The following judgments were delivered:

Coussey, I.A. This appeal raises questions of practice in garnishee proceedings.

The proceedings took place in the Magistrate's Court and there were two other actions of similar nature in which garnishee orders were made at the same time.

In the present suit the plaintiff obtained judgment against the defendant on the 3rd March, 1950, for £150 with five guineas costs. In two other suits on the same day the same plaintiff obtained judgment against the same defendant for £100 and £4 14s. 0d. costs and £200 with eight guineas costs respectively.

As if the three actions had been consolidated, the respondent, then applicant, filed one motion paper with affidavit in the Magistrate's Court on the 17th March, for an order that he be made a party to the garnishee proceedings. He probably thought that by filing one motion paper in the three actions costs would be saved. Actually it was not until the 22nd March that the judgment-creditor filed his applications for the garnishee orders. He cited the Command Paymaster as garnishee and his applications were listed on the same day, the 22ncl March. On that day a garnishee order nisi was made by the Court returnable for the 31st March, the same day for which the respondent had set down his motion to be joined as a party. The ground for the respondent's application was that he claimed to be beneficially entitled to the amount sought to be garnished in each case. He claimed that the money had been assigned to him by the debtor and that the Garnishee held it for the respondent.

On the 31st March the respondent's motion was first taken. His application was made under section 87 of Cap. 205, namely the Sheriffs and Enforcement of Judgments and Orders Ordinance. It was dismissed by the learned Magistrate on two grounds; firstly, that the appellant had sworn, prematurely, on the 17th March that garnishee proceedings 'lad commenced, when in fact they did not start until the 22nd March, and secondly, that the respondent had made one application without leave of the Court on one motion paper in three cases as if they had been consolidated. It is to be observed that although the Court raised [pg 88] the question as to why the three different suits had been consolidated in one motion paper, ill dismissing the respondent's application, costs of ten guineas to the judgment creditor, five guineas to the garnishee and one guinea to the judgment debtor were awarded against the respondent in each matter as if there were three separate applications before the Court, although the parties were identical in each case.

The Court then proceeded immediately to hear and determine each garnishee summons. A Captain Petty appeared for the Paymaster and he testified that there was an arrangement that Army contracts given to the judgment-debtor should be carried out by the respondent and that the moneys accruing from the contracts should be paid to the respondent. The Court, however, made the garnishee order absolute in favour of the judgment-creditor, the present appellant.

On the 12th April the respondent moved the Court under section 10 of the Magistrates' Courts (Appeals) Ordinance for an order to set aside the garnishee order absolute of the 31st March and for an order that the respondent be made a party to the garnishee proceedings. That application was refused for the reason that the proceedings on the order absolute on the 31st March were as between the judgment-creditor, the judgment-debtor and the garnishee and that the appellant was not a party to those proceedings and that his mere application, which was refused, to be let in as a party did not in law make him a party to the proceedings so that he could treat the order absolute as an order made ex parte against him; and further that the Court could not review its own order.

From the refusal of that motion the respondent appealed to the Supreme Court and he also appealed from the decision of the 31st March which has been referred to above. As to both appeals he contended that the costs awarded were excessive, and that the decision refusing his application to be joined as a party in the garnishee proceedings was unjust in that the order refused was necessary for doing justice.

As to the order of the 31st March it was argued further that the Magistrate was prejudiced and was wrong in holding that the respondent's affidavit which alleged that garnishee proceedings had commenced on the 13th March was deliberately untrue.

As to the order of the 12th April it was also argued that the learned Magistrate, was wrong in holding that the garnishee order absolute was made ex-parte so far as the respondent was concerned.

The learned Appeal Judge allowed the respondent's appeal as to the costs being, excessive and, as to the second part of the appeal, the learned Judge, after reviewing the procedure held that there had been an indiscretion on the part 0 the learned Magistrate and absolute disregard of principle and that justice required that the parties be placed in ,statu quo ante the garnishee proceeding~ so that the respondent would have the opportunity of being admitted into the garnishee proceedings as he claimed. From that judgment the judgment-creditor has appealed to this Court.

I would preface the rest of this judgment by referring to Privy Council App No. 48 of H)25, Kojo Pan v. Atta Fua.

Dealing with rule 2 of Order 5 of the Gold Coast Supreme Court Civil Procedure Rules which is identical with section 67 of the Nigerian Magistrates' Court (Civil Procedure) Ordinance (Cap. 124) and which reads:-

" The court may in all causes and matters make any order which I considers necessary for doing justice, whether such order has been expressly asked for by the person entitled to the benefit of the order or not," their Lordships remarked that the Rules of Court are comprehensive and the  Lordships' first consideration always is to secure, if possible, that substantial justice is done. That may not always be possible they said. There may [pg 90] conditions in local law or in the rules which preclude the possibility of getting round technical obstacles and doing complete justice. But in <the case of the rules of procedure in the Gold Coast Colony there were no such obstacles. The Court was invested with the widest powers. This passage is applicable in the present case.

The learned Magistrate, by what were nothing more than technical quibbles as to the filing of one motion paper in respect of three garnishee matters, and also that the respondent had sworn to his affidavit prematurely, repelled the respondent's application to be joined as a party to the garnishee proceedings. He could have taken the motion papers as being filed in an application in one of the garnishee matters and have ordered the other two to stand over or he might have directed the affidavit to be re-sworn. Instead on these pure matters of technicality he refused the application of the respondent.

It was at this stage that the respondent moved the Court to set aside the garnishee order absolute and to make the respondent a party to the garnishee proceedings. This was refused as already stated on the ground that the garnishee order absolute was not an ex-parte order so far as the respondent was concerned.

The judgment-creditor-appellant now argues that under section 87 (Cap. 205) by virtue of which the respondent sought to be made a party to the proceedings only the garnishee could inform the Court of the claim of a third person and that the respondent had therefore no locus standi to make the application himself. Now it is true that section 87 provides that it if is suggested by the garnishee that the debt sought to be attached belongs to some third person then the Court may order such third person to appear for the claim to be investigated, but that section does not exhaust the powers of the Court. That section and the successive sections of Cap. 205 are identical with the English Order 45, rules G and 7 and there is a decision as to the powers of the Court under those sections in the case of Roberts v. Death (2). It was there held that if by any means it comes to the knowledge of the Court that a third person has on reasonable grounds a claim it is the duty of the court in equity to withhold a garnishee order absolute and to direct an enquiry.

Now what transpired in this case? After hearing the evidence of the garnishee, Captain Petty, who for his own protection suggested that the respondent had a claim, the Court, instead of suspending an order absolute called the debtor to give evidence and then held that it was satisfied from the evidence presented that there was collusion, or rather an arrangement between the debtor and the respondent to defeat his creditors. That finding was improperly made in the absence of the respondent. He had not been heard and he might well have taken the view mistakenly it is true, that an order had been made against him ex-parte.

I can find no merit whatever in this appeal. It is obvious that the Magistrate, after the stage had been set by criticising the respondent's application on the technicalities that he had incorporated three matters in one and had sworn to his affidavit prematurely, adopted a procedure destructive to the very essence of justice by refusing the respondent's application and awarded costs in favour of the judgment-creditor in each of the three proceedings on a scale unprecedented in garnishee proceedings in a Magistrate's Court. in English practice the usual costs awarded a judgment-creditor in garnishee proceedings involving over £10 is £4. This amount has been increased it is true since the war, but an award of £12 12s. 0d. is entirely unwarranted particularly in the case of the judgment­ creditor who was appearing in person in the Court where he ordinarily discharges his official duties as Registrar of the., Court.

The learned Magistrate seems to have treated the fund in the hands of the Paymaster as one to be dissipated in favour of the judgment-creditor and that was entirely wrong. Happily the learned Judge set these matters right on appeal [pg 91] and I need only add that there is no substance in the appeal to this Court. For these reasons, in my view, the appeal should be dismissed with costs.

Foster-Sutton, P. I agree that there is no merit in this appeal and I associate myself with the remarks which my learned brother, Sir Henley Coussey, has made regarding the procedure adopted. I agree that this appeal should be dismissed with costs.

de Comarmond, Ag. C.]. I agree and associate myself with the remarks just made by the learned President.

The appeal is dismissed with costs fixed at £18 16s. 0d. Appeal dismissed.

[pg 92]

 
 

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