G. & C. Lines & Ors v. Hengrace Nigeria Ltd. & Ors

CASE IDENTIFICATION

Court

Supreme Court of Nigeria

Judicial Division

Abuja

Suit / Appeal Number

SC.214/2000

Date of Judgment

09/07/2001

NLC Citation

G. & C. LINES & ORS v. HENGRACE NIGERIA LTD. & ORS (2001) NLC-2142000(SC)

Coram

SALIHU MODIBBO ALFA BELGORE, JSC
IDRIS LEGBO KUTIGI, JSC
SYLVESTER UMARU ONU, JSC
SAMSON ODEMWINGIE UWAIFO, JSC
EMMANUEL OLAYINKA AYOOLA, JSC

EDITORIAL SUMMARY

Editorial — not part of the judgment as delivered

Facts of the Case

The respondents commenced an action at the High Court of Lagos State seeking reliefs in respect of an admiralty matter. The High Court made an ex parte order of injunction in favour of the respondents. The appellants appealed against the decision of the High Court to the Court of Appeal.

The Court of Appeal, upon hearing the appeal, correctly held that the High Court of Lagos State lacked jurisdiction to entertain admiralty matters and accordingly set aside the ruling of the High Court. However, rather than striking out the suit, the Court of Appeal proceeded to make an order transferring the matter to the Federal High Court. The appellants further appealed to the Supreme Court against the order of transfer.

Issues for Determination

ISSUE: Whether the Court of Appeal had the power to transfer a suit to the Federal High Court after holding that the trial court lacked jurisdiction.

Decision / Holding

The Supreme Court allowed the appeal, set aside the order of transfer made by the Court of Appeal, and substituted therefor an order striking out the suit filed before the High Court of Lagos State.

Ratio Decidendi

1. JURISDICTION – Transfer of Causes – Power of Court of Appeal to Transfer Matter to Federal High Court – Absence of Statutory Power to Transfer

"All the Court of Appeal ought to have done was to strike out the entire case."

Per Belgore, JSC, in G. & C. Lines & Ors v. Hengrace Nigeria Ltd. & Ors (2001) NLC-2142000(SC) at p. 1; Paras B–C.

2. JURISDICTION – Transfer of Proceedings – Court of Appeal's Power to Transfer Where Trial Court Lacks Jurisdiction – Nullity of Transfer Order

"The Court of Appeal having rightly found that the Lagos State High Court lacks the requisite jurisdiction to entertain the matter before it, has no right to have made an order transferring the matter to the Federal High Court, instead of striking out the matter. The Court of Appeal has no power of transfer in this matter."

Per Kutigi, JSC, in G. & C. Lines & Ors v. Hengrace Nigeria Ltd. & Ors (2001) NLC-2142000(SC) at p. 1; Paras D–E.

3. JURISDICTION – Effect of Proceedings Conducted Without Jurisdiction – Transfer of Suit to Court with Jurisdiction – Proper Course is to Strike Out

"The proceedings before the Lagos High Court having been set aside as a nullity, the order by the court below (Court of Appeal) transferring the matter to the Federal High Court would be a nullity and it is so declared."

Per Onu, JSC, in G. & C. Lines & Ors v. Hengrace Nigeria Ltd. & Ors (2001) NLC-2142000(SC) at p. 1; Paras E–F.

4. JURISDICTION – Power of Court of Appeal to Transfer Suit – Court of Appeal's Powers Where Trial Court Lacks Jurisdiction

"I cannot see that the lower court has power to do that. Having found that the action was filed in a court which has no jurisdiction, the lower court ought to have struck out the suit."

Per Uwaifo, JSC, in G. & C. Lines & Ors v. Hengrace Nigeria Ltd. & Ors (2001) NLC-2142000(SC) at pp. 1–2; Paras F–A.

5. JURISDICTION – Transfer of Suit – Proper Order Where Trial Court Lacks Jurisdiction is to Strike Out, Not Transfer

"It is now argued that since the High Court of Lagos State had no jurisdiction and the ruling of the High Court had been set aside, the suit should have been struck out. There is merit in the appeal."

Per Ayoola, JSC, in G. & C. Lines & Ors v. Hengrace Nigeria Ltd. & Ors (2001) NLC-2142000(SC) at p. 2; Paras B–D.

Orders of Court

Appeal allowed.
The order of transfer made by the Court of Appeal is set aside.
The suit before the High Court of Lagos State is struck out.
The injunction granted by the High Court of Lagos State is discharged.
No order as to costs.

APPEARANCES

Counsel for the Appellant(s)

Oluwafemi Atoyebi (with him, A. O. Olorunfemi)

Counsel for the Respondent(s)

Not represented

Amicus Curiae

None

JUDGMENTS / OPINIONS OF THE COURT

Authoritative judicial text as delivered

Lead / Majority Opinion

— (DELIVERED BY M. A. BELGORE J.S.C. (DELIVERING THE LEAD JUDGMENT): )

This appeal has great merit.

P.1

The Lagos High Court has no jurisdiction in Admiralty Matters and Court of Appeal said so clearly in setting aside the Ruling of Lagos High Court; but it went ahead to transfer the matter to Federal High Court without stating the authority it relied upon.The Lagos High Court has no jurisdiction and Court of Appeal also cannot transfer or remit to Federal High Court in the absence of any law recognizing such a transfer. All the Court of Appeal ought to have done was to strike out the entire case. Under S.22 Supreme Court Act I enter a verdict of striking out the suit which was before a court without jurisdiction. There is no order for costs.

Concurring Opinion(s)

— I. L. KUTIGI, J.S.C.:

The Court of Appeal having rightly found that the Lagos State High Court lacks the requisite jurisdiction to entertain the matter before it, has no right to have made an order transferring the matter to the Federal High Court, instead of striking out the matter. The Court of Appeal has no power of transfer in this matter (See Oloriode v. Oyebi) (1984) 1 S.C.N.L.R. 390 Ojora v. Odunsi (1964) 1 All N.L.R. 55. Anon Lodge Hotels Ltd. v. Mercantile Bank Nigeria Ltd. (1993) 3 NWLR (Pt.284) 721. The appeal therefore succeeds and it is hereby allowed. An order striking out the case is hereby substituted for the one of transfer made by the Court of Appeal.
No order as to costs.

— S.U. ONU, J.S.C.:

The proceedings before the Lagos High Court having been set aside as a nullity, the order by the court below (Court of Appeal) transferring the matter to the Federal High Court would be a nullity and it is so declared vide Section 22 Supreme Court Act. No order as to cost.

— S.O. UWAIFO, J.S.C.:

The case shows that the Lagos High Court made an ex-parte order in an admiralty matter over which it has no jursidiction.

P.2

The lower court, on appeal, set aside the order but made an order transferring the suit to the Federal High Court. I cannot see that the lower court has power to do that. Having found that the action was filed in a court which has no jurisdiction, the lower court ought to have struck out the suit. I accordingly allow this appeal. I make an order, as my learned brother, Belgore, JSC, has done, striking out the suit.

— O. AYOOLA, J.S.C.:

This appeal arose from a decision of the Court of Appeal transferring the action instituted by the plaintiff, Hengrace Nigeria Limited, to the Federal High Court after holding that the High Court of Lagos State had no jurisdiction to entertain the suit which was an admiralty matter. It is now argued that since the High Court of Lagos State had no jurisdiction and the ruling of the High Court had been set aside, the suit should have been struck out. There is merit in the appeal. The order of injunction is discharged since that was sought by the appellant before the High Court.

Appeal is allowed. Suit before High Court of Lagos State is struck out. Injunction by that court is made without jurisdiction and for avoidance of doubt it is discharged.

P.3

Dissenting Opinion(s)