IN THE NATIONAL INDUSTRIAL COURT OF NIGERIA
IN THE SOKOTO JUDICIAL DIVISION
HOLDEN AT SOKOTO
BEFORE HONOURABLE JUSTICE K.D.DAMULAK
ON MONDAY THE 15TH DAY OF OCTOBER, 2018
SUIT NO.NICN/SK/10M/2018
BETWEEN
JESSICA AKAA .
JUDGMENT/CREDITOR/REPONDENT
AND
STERLING BANK PLC
JUDGMENT/DEBTOR/APPLICANT
REPRESENTATION
N.S Naige, holding brief of
- Y. Gwazawa,for the applicant.
Solomon Alimasunya, for the respondent.
RULING
- INTRODUCTION
This is a post judgment ruling on an application for interpretation of judgment filed by the judgment debtor. The motion was filed on 16/7/2018 and it prays, among others, for;
AN ORDER interpreting the judgment of this court delivered on the 19th day of April 2018 particularly the court’s order at page 21 thereof thus: “an order that the defendant shall pay the salary arrears and cost within 30 days from the date of this Judgment failure upon which the Judgment Sum and cost shall attract 10% interest.”
Attached to the motion are four annexure marked as follows;
- The judgment of this court in suit No. NICN/KN/34/2016 delivered on 19th April, 2018. – Exhibit “A”.
- A Sterling Bank Cheque issued in the name of Jessica Akaa for the sum of N3,376,395.63 dated 27/6/2018 -exhibit “A1”.
- A forwarding letter from the Applicant in respect of the payment showing details of the payment -exhibit “A2”.
- A letter from the respondent’s counsel to the applicant dated 27/6/2018 – exhibit “A3”.
FACTS OF THE APPLICATION
The claimant/judgment creditor instituted suit NO.NICN/KN/34/2016 before this Court by a complaint on 8/7/2016. Judgment was delivered in her favour on 19/4/2018 for payment of her salary arrears from 16/1/2013 to 19/4/2018 and a cost of N100,000.00 followed by the above order sought to be interpreted.
The defendant judgment creditor calculated the salaries of the claimant plus the cost and 10% interest on 27th /6/2018 to be N3,370,395.63 and paid same to the claimant judgment creditor. Out of this sum, the 10% interest was calculated as N34, 574.53.
By the order of the Court dated 19th April, 2018, the judgment sum would attract 10 % interest after 30 days. The said 30 days expired on the 19th May, 2018. The payment made on the 27th June, 2018 was made 38 days late.
The judgment creditor/respondent then wrote a letter to the judgment /debtor/applicant through her counsel on the same 27/6/ 2018 claiming that since the judgment sum, i.e salaries as calculated by the judgment debtor, is N3,335,581.10, ten percent interest is N333,582.11 and since the cost is N100,000.00, the 10 percent interest is N10,000.00 making a total sum of N 343,582.11 that ought to be paid to her as interest as against N34,574.53 that was paid to her.
This is why the defendant /judgment debtor has brought this application for interpretation of the judgment of this Court.
- SUBMISSIONS OF THE APPLICANT
The applicant’s affidavit contains mainly the facts as above shown. Learned applicant’s counsel argued that the provisions of Order 47 Rule 7 of the National Industrial Court of Nigeria Rules 2017 exclusively applies to the case, so the 10% interest per annum ordered by this Honourable Court to be paid to the Judgment Creditor at the expiration of 30 days must be calculated based on the number of months in which the Defendant/ Applicant has defaulted only.
That whatsoever penalty which is levied per annum must be paid at the expiration of 12 full months. However where such penalty determines before the expiration of 12 months, the levy upon same shall be calculated based on the number of months which have accumulated from the date in which the levy/penalty was first made till its determination.
That the calculation made by the Claimant/ Respondent as contained in their reply which is attached to this application and marked as Exhibit A3 is wrong in that one full year’s interest (i.e 12 months interest) is calculated including future months that are yet to come into existence.
- SUBMISSIONS OF THE RESPONDENT
The counter affidavit of the respondent does not contain any contrary facts from those deposed to by the applicant except for a contention in paragraph 8 thereof which reads as follows;
- That from a perusal of the judgment, there was no mention of “per annum” interest on the sum of 10% simpliciter.
- COURT DECISION
This application is allowable by Order 47 Rules 23 and 24, it appears there was a typographical omission when the motion reads “Brought Pursuant to Orders 23 and 24 of the National Industrial Court of Nigeria (Civil Procedure Rules) 2017 and Under the inherent Jurisdiction of this Honourable Court. By Rule 24, the application ought to be brought 30 days after the judgment. In this case, the judgment was delivered on 19/4/2018 and the judgment debtor complied with the order of court on 27/6/2018 and the dispute as to the interpretation of the judgment arose on that date and this application was filed on 16/7/2018, a period of 19 days after the dispute arose. In the circumstance, even though the applicant did not apply for an extension of time, the interest of justice requires that this Court invokes the provision of Order 5 Rule 3 of the Rules of this Court to do justice. The said Rule provides as follows;
5(3) The Court may direct a departure from these Rules where the interest of justice so requires.
I accordingly depart from the requirement of Order 47 Rule 24 to hear this application in the interest of justice.
It is clear that the respondent’s contention is that once the judgment debtor exceeded 30 days after the date of the judgment, it shall pay 10% interest simplicita on the judgment sum because the court did not say 10% interest per annum. The judgment debtor on the other hand interprets the judgment in the light of Order 47 Rule 7 of the National Industrial Court of Nigeria (Civil Procedure) Rules 2017 which provides that:
“The court may at the time of delivering the Judgment or making the order give direction as to the period within which payment is to be made or other act is to be performed and may order interest at a rate not less than 10% PER ANNUM to be paid upon any Judgment”
It must be noted that the power or jurisdiction of the court is as regulated by statute and the Rules of Court and the Court cannot order what it has no power to order. See STABILINI VISIONI LTD. V. METALUM LTD (2008) 9 NWLR (PT.1092) 416 AT 436, where the court held that “Post-judgment interest is awarded where there is power conferred by statute on the court to do so in the exercise of court’s discretion.”
This means that the language of this Court in awarding post judgment interest must first be understood in the light of its powers. Based on the provisions of Order 47 Rule 7 of the Rules of this Court which empowers this Court to order post Judgment interest, the one and only interpretation of the order of this Court for interest is that the interest is per Annum as prescribed by the Rules and is to be so calculated.
The judgment creditor respondent was not entitled to the Sum of N 343,582.11 as 10% interest on the sum of N3,435,581.10 when the judgment debtor was only 38 days late in payment. The judgment creditor was only entitled to that portion of 10 % per annum on N3,435,581.10 for 38 days and no more.
Ruling is read and entered accordingly.
…………………………….
HON. JUSTICE K.D.DAMULAK
PRESIDING JUDGE, NICN SOKOTO
