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AWARD OF INTEREST: Whether a party must plead and prove his entitlement to interest and the rate of interest

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"Another ground upon which the Appellant challenged the judgment of the trial Court is that the interest awarded was not specifically pleaded by the Respondent. The law on award of pre-judgment interest is clear and to the effect that interest must be specifically pleaded or be such that arises from the transaction as a matter of mercantile custom. The Supreme Court in the case of NPA v. AMINU IBRAHIM & CO. & ANOR(2018) LPELR-44464(SC)(Pp. 66-68, Paras. D-E) Per PETER-ODILI, J.S.C., gave an exposition on the above thus: "On the matter of pre-judgment interest, the law is clear that such interest is awarded where there is an agreement for payment of interest, in which case a claim as such must be pleaded and proved as it would not do to just state a claim for pre-proof of same. However a Court can grant pre-judgment interest on a monetary or liquidated sum awarded to a successful party even where such a party did not plead or adduce evidence to prove it as such interests naturally accrue from the failure to pay the sum involved over a period of time thereby depriving a party from the use and enjoyment of the sum involved. That in my humble view is substantial justice. I make reference to the case of Adeyemi v Lan and Baker (Nig) Ltd (2000) 7 NWLR (pt.663) 33 pg 48, paras D-E, it was held thus:- "...The law on pre-judgment interest is that the award must be based on either statute, contract or mercantile custom or equity and the plaintiff must plead the basis and lead satisfactory evidence. That is so but the law recognizes the right to interest of plaintiff in claim for the return of money from commercial transactions particularly where the defendants has held the money of the plaintiff for some time. In a situation arising from commercial matters I should think that a party holding on to the funds of another for so long without justification ought to pay him compensation for so doing." See also Petgas Res. Ltd v Mbanefo (2007) 6 NWLR (Pt. 1031) 545. A trial Court can award judgment interest. The authority to award judgment interest is enshrined in the Rules of Court. Please see the case of B.E.G.H Ltd v. U.H.S & L. Ltd (2011) 7 NWLR (Pt.1246) 246. The relevant position contained in the Federal High Court (Civil procedure) Rules 2000 is found in Order 42 Rule 7 this states as follows:- "The Court at the time of making any judgment or order or at any time afterwards, may direct the time within which the payment is to be made or other act is to be done, reckoned from the date of the judgment or Order, or from some other point of time, as the Court deems fit and may order interest at a rate not exceeding 10% per annum to be paid upon any judgment, commencing from the date thereof or after wards, as the case may be." On the final point is that it is too late in the day for the appellant to complain about the report and that delay in complaint has constituted a waiver which needs not be pleaded to apply. See Ekundayo v F.C.D.A (2015) LPELR - 24512, Auto Import Export v Adebayo (2005) 19 NWLR (Pt.959) 44." See: DAVE EGBEJULE (T/A DEVKON VENTURES) & ANOR v. FORTHRIGHT SECURITES & INVESTMENT LTD (2017) LPELR-43540(CA); DASOFUNJO v. AJIBOYE (2017) LPELR-42354(CA); and L. O. YEMOS (NIG) LTD & ANOR v. UNITY BANK (2016) LPELR-41211(CA)." In LIBRA IMPORTS NIGERIA LIMITED v. ACCESS BANK PLC Suit No; CA/L/450/2010 Per TUKUR , J.C.A. (Pp. 9-12, Paras. C-B)



   
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