OKOYE V. DUMEZ (NIG) LTD. & ANOR

• Pages: 780-797

OKOYE V. DUMEZ (NIG) LTD. & ANOR.

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780

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OKOYE V. DUMEZ (NIG) LTD. & ANOR.

DR. JOSEPH C. OKOYE

(Carrying

on business as



APPELLANT

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Oskol Steel Construction Co.)

V

1.

DUMEZ NIGERIA LIMITED



RESPONDENTS

2.

S.G.E. NIGERIA LIMITED

SUIT NO. SC 89/1984

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SUPREME COURT OF NIGERIA

BELLO,

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J.S.C.

UWAIS,



J.S.C.

COKER,



J.S.C.

KARIBI-WHYTE,

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J.S.C.

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

KAWU,



J.S.C.

7th June, 1985

Equity - Priorities - Competing legal and equitable interests - Legal interests

acquired with notice - Effect.

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Evidence - Admissibility - Unregistered land instrument - Whether admissible to

prove equitable interests.

Land Law - Declaration of leasehold title - Option to renew - Where option not

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subject to consent of Landlord - Landlonl's refusal to give consent.

ISSUES:

1.

Whether a Land instrument which is not registered as required by the Lands

Instruments Registration Law is admissible in evidence as an instrument

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affecting land or for any other purpose.

2.

Whether the refusal of a Landlord to consent to the renewal of a lease which

contains an option to renew without stating that the Landlord's consent is

required, makes the tenant a trespasser where the tenant remains on the land

at the expiration of the lease.

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FACTS:

The plaintiff/appellant brought an action against the defendant/respondent

claiming a declaration of leasehold title to a piece of land, damages and injunc-

tion

to restrain the defendants who had entered into possession pursuant to an un-

registered

lease coupled with rent payment and later retained possession by virtue

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of an option clause despite the Landlord refusal to renew. There was a subsequent

registered lease by the Landlord's to the plaintiff while the defendant was still in

possession. The trial Judge granted the declaration and the injunction sought

whereupon the defendants appealed to the Court of Appeal which dismissed the

plaintiffs' claim in respect of an injunction and award of damages. The plaintiffs

50 appealed to the Supreme Court.

HELD:

1. Where a purchaser of land

or lessee is in possession of land by virtue of a

registrable instrument which has not been registered, and has paid the purchase

money or the rent to the vendor or lessor, the purchaser or lessee has acquired

781

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NIGERIAN SUPREME COURT CASES

[19851 2 N,S,G,G,

an equitable interest in the land which is as good as a legal estate and the

equitable interest can only be rendered defective by a purchaser of the land

for value without notice of the prior equity.

2.

A registrable instrument which has not been registered is admissible to prove

such equitable interest and to prove payment of purchase money or rent.

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3.

Where there is an option clause to renew a lease and the option is not subject

to the consent of the Landlord, a

refusal

of the Landlord's consent to the exercise

of the option by the Tenant does not make the Tenant a trespasser on the land,

because the Landlord can be compelled by an order of specific performance

to give consent.

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4.

A Lessee who obtains a lease with notice of an incumbrance on the demised

property takes subject to the incumbrance. In this case the appellant had prior

knowledge of the defendant's presence on the land but failed to make adequate

enquiries. For these reasons, the appellant is not entitled to damages for

trespass and an injunction.

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CASES REFERRED TO IN JUDGMENT:

1.

Alade v. Olukade

(1976) 2 S.C. 183, 189.

2.

Elkali and Anor v. Fawaz

6 W.A.C.A. 212.

3.

Jammal v Saidi Fetuga

11 N.L.R. 86.

4.

Savage v. Sarrough

(1937) 13 N.L.R. 141.

5.

Ogunbambi v. Abowab

(1951) 13 W.A.C.A. 222.

6.

Fakoya v. St. Pauls Church Sagamu

(1966) 1 All N.L.R. 74.

7.

Oni v. Arimoro

(1973) 3 S.C. 163.

8.

Bucknor-Maclean v. lnlaks,

(1980) 8-11 S.C. 1.

9.

Obijuru v. Ozims,

(1985) 4 S.C.

10.Moukarzel v. Hannah,

12 W.A.0 A. 125

11.0bisanya v. Nwoko & Anor,

(1974) 6 S.C. 69.

12.Joseph Oni v. Samuel Arimoro,

(1943) N.M.L.R. 237.

13.Manchester Breney

Co. v.

Coombs,

(1901) 2 Ch. 608, 613.

14.Foster v. Robinson,

(1951) 1 K.B. 149, 156; (1950) 2 A.E.R. 149.

15.Errington v. Errington,

(1952) 1 All E.R. 149,

16.

Canadian Pacific Railway Co. v. R,

(1931) A.C. 414, 432.

17.Aldin v. Latimer Muirhead &

Co., (1894) 2 Ch. 437.

18.Delaney v. Smith

(1946) 1 K.B. 393, 400.

19.United Marketing

Co. v.

Kara

(1963) 1 W.L.R. 523.

20.Ahamath v. Umma

(1931) A.C. 799.

21.Griffin v. Talabi

12 W.A.C.A. 571.

22.Minister of Lands WIN v. Azikiwe

S.C. 169/60 of 31/1/69.

23.Djukpan v. Orovuyourbe

(1967) N.M.L.R. 287, 291.

24.Erinosho v. Owokoniran

(1965) N.M.L.R. 479 at 484.

25.

Coker v. Ogunye

(1939) 15 N.L.R. 57.

26.Amankra v. Zankley

(1963) 1 A.N.L.R. 364.

27.Orasanmi v. ldowu

(1959) 4 F.S C. 40.

28.Omosanya v. Anifowoshe

(1959) 4 F.S.C. 94.

G.C.M. Onyiuke

(with

F. Ayologun (Dare), N. Peter-Okoye,

G.

Onwubuya),

for the

Appellants.

P.O. Balonwu, S.A.N.

(with

Joe Njoku),

for the Respondents.

BELLO, J.S.C.

(Delivering the Lead Judgment): This appeal is against the

judgment of the Court of Appeal, allowing by a majority of 2 to 1 the appeal of the

present respondents from the judgment of the High Court of the Rivers State holden

at Port Harcourt. In the said High Court, the present appellant as plaintiff had

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