LEGAL PRINCIPLE: CIVIL PROCEDURE — Exercise of Judicial Discretion — Payment by Instalments — Circumstances Justifying
PRINCIPLE STATEMENT
Where the economic situation is such that it is not possible to raise money from banks or financial institutions, it is reasonable to allow more time for payment, such as payment by instalments.
RATIO DECIDENDI (SOURCE)
Per Kalgo, JSC, in Josiah Cornelius Ltd & Ors v. Ezenwa (2002) NLC-952000(SC) at p. 12; Paras C–D.
"It was also not in dispute and the court can take notice thereof that at the material time the orders were made, the economic situation in the country was so bad that it was not possible to raise money from any banks or financial institutions. Therefore it was reasonable in my respectful view, to allow the majority shareholder more time to be able to resuscitate the companies concerned."
EXPLANATION / SCOPE
The court may order payment by instalments where the economic situation justifies it. The court can take judicial notice of economic conditions. The principle promotes practical justice. The court may consider the debtor’s ability to pay. The rule applies to money judgments. The court has discretion to structure payments. The objective is to balance the interests of both parties. The court may allow more time to enable the debtor to raise funds. The principle prevents injustice from immediate enforcement. The appellate court will respect such orders if reasonable. The court must consider the creditor’s interest as well.