ADAMU V. KANO NATIVE AUTHORITY

• Pages: 25-27

ADAMU V. KANO NATIVE AUTHORITY

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The case of

Eldridge

and Morris v

Taylor,

(3) is the case of a money-lender

who failed, as in this case, to send the borrower in that case a copy of the agree-

ment for repayment of a loan as required by section 6 of the Money-Lenders Act,

1927; it was held that the contract was unenforceable and that the money-lender

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could not maintain an action to enforce it.

It is quite clear, therefore, that the mortgage deed in question is not void or il-

legal but only unenforceable. The rights of transferees of securities taken by

money-lenders are now protected by statute since the decision in

Re Robinson,

Clarkson v Robinson,

(4) and a proviso to section 23(1) of the Money-Lenders Or-

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dinance which reproduces section 17 of the Money-Lenders Act of 1927 reads:

"Provided that notwithstanding anything in this Ordinance-

(a) any agreement with or security taken by, a money-lender in respect of money

lent by him after the commencement of this Ordinance shall be valid in fa-

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your of any bona fide assignee or holder for value without notice of any de-

fect due to the operation of this Ordinance and of any person deriving title

under him".

The appellant by Exhibit G warned the public that there was an action in Court

20

to set aside the mortgage deed under which the sale was being conducted and

that any one who brought the mortgaged property did so at his own risk. The no-

tice did not disclose that the case in Court was based on an alleged fraud nor did

it mention that there was a defect atta;:;hing to the mortgage deed under the Money-

Lenders Ordinance.

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The respondent Ojikutu therefore had no notice of the mortgage deed to the

operation of the Money-Lenders Ordinance. He was therefore a bona fide pur-

chaser for value without notice and the sale and conveyance of the mortgaged

property to him are therefore valid within the provisions of section 23 of the Money-

Lenders Ordinance.

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I

would therefore dismiss this appeal with costs of £19-14s- Od to each respond-

ent.

Foster Sutton, F.C.J. I

concur.

Abbott, Ag.

F.J.

I concur.

Appeal dismissed.

ADAMU V. KANO NATIVE AUTHORITY

KATO DAN ADAMU

APPELLANT

V

KANO NATIVE AUTHORITY

RESPONDENT

45

SUIT NO. FSC 3

1

/

1

956

FEDERAL SUPREME COURT

FOSTER SUTTON, F.C.J.

JIBOWU,

F.J.

ABBOTT,

Ag. F.J.

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13th April, 1956.

Criminal Law- Murder - cause of death inferred from circumstances where lack

of medical evidence - Moslem Law - Kasamah Oath.

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