BELOXXI & COMPANY LIMITED & ANOR V. SOUTH TRUST BANK & ORS.

KUMAI BAYANG AKAAHS, OFR, J.C.A.: (Delivering the Leading Judgment): The issue raised in this appeal is whether a trial court can proceed to determine or hear evidence concerning a counter claim after it has dismissed the suit. The argument advanced by the appellants is that the trial court having dismissed the suit becomes functus officio and therefore cannot proceed with the counter-claim.

It is necessary at this stage to state the background facts leading to this appeal. On 21/10/2005, the present appellants as plaintiffs commenced legal proceedings in the Federal High Court Lagos against the respondents as defendants in Suit No.FHC/L/CS/1113/05 claiming the following declaratory reliefs endorsed on the Writ of Summons:-

"The plaintiffs' claim against the defendants jointly and severally is for:

1. A declaration that upon a proper construction of the true spirit and letters of the loan agreement comprised in (a) proposal letter from the 1st defendant dated 29th October 2003 (b) let…