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HOME           6  WEST AFRICA COURT OF APPEAL

 

                                                             

                                                                           Lagos, 7th June, 1940.

COR. KINGDON, PETRIDES AND GRAHAM PAUL, C.JJ.

                                           RONALD AYODELE AJAYI YOUNG  AND ANOTHER            Appellants.

                                                                                 v.

                                        A. W. B. ABINA AND FOUR OTHERS                              Respondent

 

                                                  

 Appeal Court, 7th June, 1940. Appeal from Supreme Court of Nigeria.

          

       Respondents. Devise of real property in Will-powers of executors and trustees. lender English Act of 1925 not applicable to Nigeria-applicant of Land Transfer .Act 1897 to Nigeria-valid Mortgage executors.

The material facts set out in the judgment were not in dispute .. There w devise in a Will of real property to A the father of the plaintiffs upon trust to" the same as family property for the use and benefit of all his relatives": Sale partition was forbidden. The testatrix in her lifetime granted a Mortgage w was subsisting. A fresh Mortgage was granted to B by her Executors alter death. A granted to B now deceased. whose personal representatives the 1st Ii defendants are, a conveyance. The Court bellow made an Order setting the conveyance, and granted a declaration that the land was held as I, property in the terms of the Will but refused an account.

Held that In re Sholu 9 N.L.R. 37 was wrongly decided and that the Transfer Act of 1897 is a statute of general application; that the executors trustees had power to dispose of the property by mortgage or sale; that in circumstances of this case there was no question of native law or custom and see 20 of the Supreme Court Ordinance did not apply: on the ground that as equitable mortgagee in possession granting a lease is liable to account for rents the first four defendants were the personal representatives an account was ordered· to be filed.

The facts of the case are sufficiently set out in the judgment.

A. L. Johnson (J Martin with him) for Appellants.

E. J. Alex-Taylor (with him O. Coker) for 1st four Respondent

 Ayo Williams for 5th Respondent ..

The following joint judgment was delivered :­KINGDON, C.J., NIGERIA, PETRIDES, C.J., GOLD COST. GRAHAM PAUL, C.J., SIERRA LEO:NE.

This case arose out of a devise in a Will by one Elizabeth John (deceased). The devise was of a certain real property in Balogu. Street, Lagos to one Benjamin Young .. his heirs executors and administrators upon trust to hold the same as family property for the use and benefit of all his relatives and the same should on no account be sold or partitioned by him them or any of them."

The Plaintiffs are the children of the said Benjamin Young Benjamin Young is still alive. He was sued as a defendant however appeared or took any part in the suit. of the other Defendant the tint four are the personal representative of Badaru Abina who died on 4t~ May, 1937 intestate. The fifth Defendant Dr. A. Oyejola is the surviving Executor of the said Elizabeth John (deceased) under her said Will.

There was another Defendant G. L. Gaiser but he has disappeared from the suit as he was called only as a tenant of the premises in question under a lease which has now expired.

The material facts of this case are not in dispute and may be shortly stated. In her lifetime the Testatrix on 2]st August, 1915 granted a mortgage over the property in question in this case and at her death the mortgage was still subsisting. The Testatrix appointed three Executors and Trustees under her Will. Of these, two obtained Probate, Dr. Oyejola the fifth defendant and one Mr. Cole now deceased. After they took Probate the two Executors on 1st September, 1917 granted a fresh mortgage to the said Badaru Abina over this same property for £4(10. They used the £400 in part to payoff the principal and interest due under the subsisting mortgage but there was no reconveyance in regard to the first mortgage. The amount of principal and interest so paid off was £291. The balance of the £400 was used for general purposes of the administration of the deceased's estate.

On 22nd August, 1924 Benjamin Young granted to Badaru Abina a conveyance of the property in question. In that conveyance he narrated that the deceased Elizabeth John by her Will " gave and devised to the said vendor amongst other things the saiid hereditaments and premises" and he granted and conveyed the property in question expressly" as Beneficial Owner." The conveyance bears to be in consideration of the payment by Badaru Abina to Benjamin Young of .£1,700 and there is in evidence a receipt for that amount by Messrs. Irving and Bonnar as Solicitors for Benjamin Young dated three days before the date of the conveyance.

In regard to that conveyance the first four defendants (Badaru Abina's personal representatives) pleaded in their amended State­ment of Defence" that the conveyance referred to was a piece of mistaken conveyancing and inoperative to pass any estate in the property and was therefore a nullity."

The Plaintiffs' claim in this suit is :-

•. An order setting aside the Mortgage, Conveyance, or any other instrument having the effect of disposing by sale, mortgage or otherwise dealing with the House and landed property known as 28 Balogun Street, Lagos formerly the property of one Elizabeth John of Lagos (deceased) .

•. Declaration that the said property is by virtue of the Will of the said Elizabeth John (deceased) dated the 19th June, 1915 the property of the plaintiffs was against all the defendants .

•. A full account of the rents and mesne profits of the said property or what might have been so received but for the wilful default of the defendants as from the 22nd August, 1924 to the 31st March, 1938 or the date of payment of what shall be found due and payable to the plaintiffs on the taking of the said account.

" Further or otter relief as is meet ",


     The court below made an Order setting aside the conveyance by Benjarnin Young and granted a declaration that the property in question is held as family property in terms of the Will. On other points the Court below gave judgment for the Defendants.

There was another action taken by the same Plaintiffs aft judgment in the Court below, and there was an unsuccessful application to the Court below to review its judgment but these not directly affect the issues now before this Court and must be ignored.

The Plaintiffs-Appellants have~ appealed to this Court again .. the judgment of the Court below, except as to that portion thereof which relates to the setting aside of the conveyance and t declaration asked for in the Writ of Summons.

The grounds of appeal are as follows :-

" 1. The Learned Trial Judge was wrong in not setting aside the mortgage along with the conveyance made thereon in spite of his definite findings_ that the property in dispute was the plaintiffs-appellants' family property and also in not ordering the 1st four defendants-respondent to render an account of their dealings with the said property.

" 2. The learned Trial Judge having found that the late Badaru Abina was Mortgagee in possession and as such an accounting party has error, in Law in refusing to order the first four defendants-respondents render an account of their dealings with the property in dispute.

"3. The judgment is against the weight of evidence."

It is manifest from the terms of the Will that under the Will. the Executors and Trustees received no express title or power' grant a mortgage of this particular property which was the subject of the specific devise already quoted. It is contended for the Appellants that the statutory powers which Executors and Trustee now have in England under the 192)) legislation are not available to Executors and Trustees in Nigeria. It is clear that English legislation of 192)) does not apply to Nigeria under section 14 of the Supreme Court Ordinance. It has been held in the Divisional Court that the earlier English Statute ad hoc the Land Transfer Act 0 1897 is not a Statute of general application and sc not applicable in Nigeria (see In re Sholu XI N.L.R.37). Counsel for t Respondents contends that the Land Transfer Act of 1897 ~ applicable in Nigeria and that under that Act the Executors ha, power to grant the mortgage for £400. Counsel for the Respondent agreed that the Executors had no power to grant the Mortgagee unless the] 897 Act applicable  to Nigeria.

If the 1897 Act applied to the facts of this case would give the two proving Executors power to grant the mortgage it is clear that, this Court would have to consider in this appeal the question whether the 897 Act applied to Nigeria.

It is quite clear that the 1897 Act does give Executors and Trustees under a Will .practically the same rights and powers t deal with real estate as they had prior to the Act to deal wit personal estate or chattels real-section (1) (i) of the Act is quite dear on that point :-

"Where real estate is vested in any person without a right in any other person to take by survivorship it shall, on his death, notwithstanding any testamentary disposition, devolve to, and become vested in his personal representatives or representative from time to time as if it were a chattel real vesting in them or him."

The effect of section 1 (i) of the Act if applied to the property in question in this case is to devolve that property on and vest it in the Executors and Trustees under the Will. Under section 2 (1) Of the Act the Executors and Trustees" shall hold the real Estate as trustees for the persons by law beneficially entitled thereto," that is to say in this case for the devisees under the Will. Under section ? (3) of the Act the real estate is to be administered in the same manner and with the same incidents as if it were personal estate.

The Executors and Trustees as the personal representatives of the. deceased have complete and absolute control over the personal property of the deceased a:1d can dispose of it by mortgage or sale "notwithstanding that the property disposed be specifically bequeathed or limited in trust by the Will." Furthermore the mortgagee or purchaser from the personal representative of the deceased " has the right to infer that the representative is acting fairly in the execution of his duty and is not found to enquire as to the debts or legacies or the application of the money." (See Halsbury's Laws of England 1st Edition Vol. XIV page 296 paragraph 685). It follows therefore if the Land Transfer Act of 1897 applies to Nigeria that the mortgage granted in this case by the Executors and Trustees was within their powers to grant and quite valid. If the Act does not apply, the Executors and Trustees had no power to grant the mortgage and it is invalid.

It is necessary therefore to decide in this appeal whether the Act does apply to Nigeria.

This question depends upon the terms of section 14 of the Supreme Court Ordinance which is in the following terms :-

" Subject to the terms of this or any other Ordinance, the common law, the doctrines of equity, and the statutes of general application which were in force in England on 1st January, 1900 shall be in force within the jurisdiction of the Court."

In the Divisional Court of Nigeria it has been held that the Land Transfer Act of ] 897 cannot be considered to be an Act of general application and that it therefore does not apply to Nigeria (see judgment of Webber J. In re Estate of james·Sholu XI N.L.R. page 37). With all respect to the learned and experienced Judge who decided this point in the Divisional Court we are unable to agree with his decision.

The Land Transfer Act of 1897 applied quite generally to all estates in England of persons dying after 1st January, 1898. It is difficult to see how a statute could be of more" general application" in England than that, and it was in force in England on 1st January, 1900. We find ourselves unable to follow the reasoning of Web J. in holding that the Land Transfer Act was" even more restricted  than several others .... and does not apply to Nigeria." would appear that the basis of this reasoning was that the L Transfer Act applied to England only and not to Scotland or Ireland We are unable to agree with this view. It seems to us that t words "of general application" are used with reference to matter of the statutes and not only geographically. Also it Seem to us that under section 14 England is the test of geographic generality. This is borne out by the general trend of the judgment' of distinguished West African Judges quoted by Webber J. in judgment in Chief Young Dede v. African Association Limited (i. N.L.R. p.13).

In the facts and circumstances of the present appeal we think it would be quite wrong to hold that the Land Transfer Act did apply. Here we have no question of native law or custom. have as Exhibits in this case a Will, two Indentures of Mortgage. and a conveyance on sale, all of them couched in the jargon of t English conveyance, all of them highly specialised document to which the Land Transfer Act was designed to apply generally.

It is our view that the decision In re Estate of James Sholu was wrong and that the Land Transfer Act of ] 897 does apply in Nice subject of ·course to the terms of section 20 of the Supreme Co Ordinance which safeguards native law or custom in suitable ca Section 20 has in our view no application to the facts and circumstances of this appeal

Applying these conclusions to this appeal we find that the Co below was right in holding that the Mortgage by the Executors w: valid and is subsisting, and that no reason has been shown for setting it aside.

As regards the claim by the Appellants against the first four Respondents for an account of rents and mesne profits question of some difficulty arise. On 15th July, 1924 the late Badaru Abina granted an Indenture of Lease to G. L. Gaiser. In that Indenture the devised premises are expressly referred to as " the property the lessor" but at that time the only estate which Badaru Abina had in the premises was that which he obtained as Mortgagee under the Indenture of Mortgage granted by the Executors. Under that

Indenture of Mortgage Badaru Abina was only an equitable Mortgagee as in regard to the previous Mortgage, though it had paid off in full, there had been no reconveyance of the legal estate to the Executors. The subsequent conveyance to Badarn Abina  by Benjamin Young has been held to be invalid, and it was not effectual to convey any estate whatever to Badaru Abina. Indenture of Lease therefore could only be granted by Ba Abina as equitable Mortgagee in possession, and as such he co validly grant the Indenture of Lease. A Mortgagee in possess'ranting an Indenture of Lease is undoubtedly liable to account for rents but after being in possession for 12 years without accounting he may plead the Real Property Limitation Act 1874, as against his Mortgagor

The reason why the Executors did not make any claim or take any action against their Mortgagee in possession for an account was apparently that they-like everyone else dealing with it-wrongly assumed that the conveyance by Benjamin Young of 22nd August, 1924 (a little over a month after the date of the Mortgage) was effectual to convey to Badaru Abina the fee simple in this property and that from the date of that conveyance Badaru Abina's dealings with the property were as owner of the fee simple and not any longer as Mortgagee in possession.

As the Real Property Limitation Act was not pleaded in the Court below it is unnecessary to consider its effects, if any, by way of barring the claim of the Plaintiffs as cestui que trustent who were not parties to the mortgage and who admittedly only came of age in 1938.

The position then is that Badaru Abina was an equitable mortgagee in possession and he-and on his death his estate and therefore the first four Defendants as his legal personal represent actives--remained liable to account to the Executors or-if the Executors acting under a quite wrong assumption failed in their duty to demand an account-to the cestui que trustent who have brought this action. I t seems to us that all the equities of the situation are in favour of ordering that the first four Respondents do file and deliver an account in the Court below of all their and Badaru Abina's dealings with the property in question and it is ordered that such account be filed in the Court below and delivered within two months of the delivery of this judgment. The Appellants may then obtain leave to falsify and surcharge that account in the ordinary way in the Court below if they are so advised. The appeal is allowed to that effect only with modified costs assessed at 15 guineas against the first four Respondents as the Appellants have been only partially successful in their appeal. In our opinion the fifth Respondent as one of the Executors who is to blame for the position which has arisen should pay his own costs, and we so order.

As regards costs in the Court below the order of the Court below in so far as it ordered the Plaintiffs-Appellants to pay 40 guineas costs to the first four Defendants-Respondents is set aside and no order as to costs substituted therefor. The Defendants­Respondents are to refund to the Plaintiffs-Appellants any amount paid to them under the order of the Court below as to costs.


 

 
 

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