LEGAL PRINCIPLE: CIVIL PROCEDURE — Injunctions — Undertaking as to Damages — Not Required in Every Case
PRINCIPLE STATEMENT
It is not in every case that an undertaking as to damages ought to be given. Where the applicant is the owner of the land and the respondent is only a lessee, an undertaking may not be appropriate.
RATIO DECIDENDI (SOURCE)
Per Ogwuegbu, JSC, in Oduntan v. General Oil Limited (1995) NLC-731992(SC) at p. 9; Paras. A–C.
"It is not in every case that an undertaking as to damages ought to be given. In this appeal, an undertaking as to damages will not be appropriate in the circumstances of this case. The appellant is the owner of the land and the respondent is only a lessee. In any case what undertaking does he require where by his action, he purported to terminate the dealership agreement?"
EXPLANATION / SCOPE
An undertaking as to damages is not mandatory in every case. The court has discretion. The principle applies to interlocutory injunctions. The court will consider the circumstances. Where the applicant has a strong case, an undertaking may not be required. The rule balances the interests of the parties. The court may dispense with the undertaking. The principle is well-established in Nigerian law. The undertaking protects the respondent if the injunction is wrongly granted. The court may impose other conditions.