Media
- Home
- Details
Hon. Justice Salisu Danjidda of the Lagos Judicial Division of the National Industrial Court has ordered Mr. Okorie to pay the Mrs. Holdings Ltd and Mrs. Oil and Gas Company Ltd the sum of N98,988,380.61 (Ninety-Eight Million, Nine Hundred and Eighty-Eight Thousand Three Hundred and Eighty Naira Sixty-One kobo Only) being the amount due and outstanding as of January 2022 in respect of the staff loan granted to the ex-employee for the purchase of housing property in Lagos.
The Court held that the firms have placed necessary particulars concerning the liquidated demand before the court and are entitled to final judgment under the summary Judgment procedure which is simply designed to ensure speedier attainment of justice with ease, certainty and dispatch because it is clear that Mr. Okorie has absolutely no defense to the case.
From facts, the claimants- Mrs. Holdings Ltd and Mrs. Oil and Gas Company Ltd had submitted that by the contract of employment, Mrs. Holdings Ltd undertook to provide Mr. Okorie with an upfront staff loan to purchase a property on the condition that the original deeds relating to the property shall be held by the firm as security for the staff loan until the loan is repaid in full.
According to the firms, between December 2018 to January 2022, Mr. Okorie was obligated to pay a total monthly installment of N121,600,000 out of which he paid a total of N22,611,619.39 leaving a total sum of N98,988,380.61. and despite several demands, Mr. Okorie neglected to liquidate his indebtedness which is due and payable.
In defense, the Mr. Okorie’s counsel raised an objection and prayed the court to strike out the matter for lack of jurisdiction on the ground that the subject matter of the case namely, the loan agreement between the firm and Mr. Okorie is not related or connected with any employment and the court has no jurisdiction to hear and determine matters relating to the loan agreement.
The Counsel further averred that pursuant to the loan agreement, the duration of the loan is for five years to be repaid on or before 14/11/2023 and the loan agreement is independent of the contract of employment.
He contended that he has not defaulted or failed to pay the full amount as he still has up until 14/11/2023 within which he is required to make payments and further that he has made and is still making different installment payments towards the fulfillment of the full loan sum as specified in the loan agreement.
In opposition, the counsel to the firms, Joseph Abukpain Esq with I. O. Uwaifo Esq maintained that their clients are not financial institutions or money lenders and that Mr. Okorie was granted the loan as part of the terms and conditions of his employment contract with the firms.
Counsel also submitted that when a loan is granted by an employer to an employee as part of the employee’s conditions of service for the purpose of improving the employee’s welfare (in this case housing), the loan relates to and is connected to the employment of the employee, urged the court to grant the summary judgment.
Delivering the judgment after careful evaluation of the submissions of both parties, the presiding Judge, Justice Salisu Danjidda affirmed the Court jurisdiction and held that by virtue of the contents of Mr. Okorie's contract of employment and the loan agreement, the loan would not have been granted by Mrs. Oil and Gas Company Ltd which is an affiliate of Mrs. Holdings Ltd if not for the employment relationship between the Mr. Okorie and the Mrs. Holdings Ltd.
“Whilst it is appreciable that by clause 4 of the loan agreement, the loan would be for a period of five years, but that does not obviate the need for the claimants to claim and enforce repayment of the amount due and payable at a certain point in the event of default or delay as provided by clause 5 of the loan agreement.
“I wish to observe that throughout the Defendant's statement of Defence as well as his counter-affidavit there is no where it is shown that between December 2018 and January 2022, he paid any money apart from the N22,611,619.39 and there appears to be no reason advanced rendering the claimant’s claims ineffective.
"Arising from the above, I am satisfied that the Claimants have placed before the court the necessary particulars concerning the liquidated demand and are therefore entitled to final judgment…"Justice Danjidda Ruled
Visit the Judgment Portal for full details
