ADEKEYE, J.C.A. (Delivering the Leading Judgment): This is an appeal against the ruling of the Federal High Court, Enugu Division delivered on the 4th of May, 2001. The brief facts of the case are that the 2nd respondent Sylvanus Ifediegwu is the Managing Director of the 1st respondent O'Silvawax International Limited.
The 2nd respondent as a customer of the Co-operative and Commerce Bank (Nigeria) Plc. Niger Bridge Head Branch maintained a current account through which a loan of N1,800,000 (One million eight hundred thousand Naira) was approved for him on the 18th of May 1993. As collateral for the loan, the 2nd respondent deposited the customary right of occupancy in respect of his building at Odekpo.
The deed of mortgage executed for the building could not be registered as the 2nd respondent failed to obtain the consent of the chairman of the Ogbaru Local Government in respect of his building and also omitted to submit his tax clearance certificate. The 2nd respondent failed to r…