LEGAL PRINCIPLE: CIVIL PROCEDURE – Parties – Business Names – Rule Permitting Suit Against Business Name Intended to Prevent Concealment
PRINCIPLE STATEMENT
It could happen that a person may carry on business in a name other than his name but may fail to register it as required under Part B — Business Names — of the Companies and Allied Matters Act, 1990. Such persons undoubtedly come within those who conceal their names. The solution to such device by that type of persons can be found in the rule that allows suing them in the name in which they carry on business. And this is intended to obviate obstacles against actions against them if their real name had first to be ascertained.
RATIO DECIDENDI (SOURCE)
Per Uwaifo, JSC, in Iyke Medical Merchandise v. Pfizer Inc & Anor (2001) NLC-291996(SC) at p. 11; Paras A–B.
"It could happen that a person may carry on business in a name other than his name but may fail to register it as required under Part B — Business Names — of the Companies and Allied Matters Act, 1990. Such persons undoubtedly come within those who conceal their names. The solution to such device by that type of persons can be found in the rule that allows suing them in the name in which they carry on business. And this is intended to obviate obstacles against actions against them if their real name had first to be ascertained."
EXPLANATION / SCOPE
The rule permitting suit against a business name is designed to prevent concealment. Individuals trading under unregistered business names may be concealing their identity. The rule allows suing them in the business name without first ascertaining the real name. This obviates obstacles to litigation. The rule serves as a solution to the device of hiding behind a business name. It ensures access to justice and prevents evasion of legal process. The principle applies regardless of registration status. The court will not allow procedural technicalities to defeat a legitimate claim. The individual remains liable behind the business name. The rule balances fairness with practical litigation needs.
