BALOGUN V. OBISANYA & ANOR.

• Pages: 23-25

BALOGUN V OBISANYA & ANOR.

23

I would also that direct that any monies taken from him be returned forthwith.

Jibowu, F.J.

I concur.

Abbott, Ag. F.J. I

concur.

Appeal allowed.

5

BALOGUN V. OBISANYA & ANOR.

10

ASHAFA R. BALOGUN

V

1. M.R. OBISANYA

15

2. A.Y. OJIKUTU

APPELLANT

RESPONDENT

SUIT NO. WACA 218/1955

FEDERAL SUPREME COURT

FOSTER SUTTON, F.C.J.

JIBOWU,

F.J.

20

ABBOTT,

Ag F.J.

6th April 1956.

Legislation- Money-Lenders Ordinance - Cap 136 - failure comply Section

12(1)-Contract unenforceable no void - sale under mortgage to "Bona fide"

25

purchaser for value without not,'ce valid.

ISSUE:

1.

Whether the effect of a failure to comply with section 12(1) of the Money-Lenders

Ordinance is to render the contract unenforceable.

30

FACTS:

The appellant borrowed money from the 1st Respondent a licensed money-

lender, and executed the mortgage securing the loan by a charge on his freehold

property. The 1st Respondent did riot sign the Mortgage Deed, nor did he furnish

the appellant with a copy of the Mortgage Deed within 7 days as required by Sec-

35

Lion 12(1) of the Money-Lenders Ordinance Cap 136. The 1st Respondent later

acting under a power of sale contained in the Mortgage sold and conveyed the

property to the 2nd Respondent. The appellant sought by one action to set aside

the Mortgage.

HELD:

40

1. The effect of a failure to comply with section 12(1) of the Money-lenders

Ordinance is to render the contract unenforcecible, but this does not make the

contract void or illegal.

2.

The 2nd Respondent was a "bona fide" purchaser for valve without notice of

any defect and therefore under the provisions of section 23 of the ordinance

45

the sale and conveyance to him of the mortgaged property was valid.

CASES REFERRED TO IN JUDGMENT.

1.

Chetwynd's Estate,Dunn Trust, Ltd. v Brown

(1937) 3 A. E.R. 531.

2.

Cohen v Leicester, Ltd.,

(1938)

n

A. E.R. 191.

50

3.

Eldridge and Morris v Taylor

(1931) 2 K.B.D. 416.

4.

In Re Robinson, Clarkson v Robinson

(1911) 1 Ch.230.

A. K. 1. Makanju

for Appellant.

K. A. Kotun

for Respondents.