By Bruce Asemota
The High Court presided over by Justice Oledi Uko Uduma has dismissed a suit filed by the Social Security and Housing Finance Corporation (SSHFC) against National Trading Corporations, NTC Limited.
Delivering judgment, the trial judge gave the background to the case disclosing that the plaintiff, SSHFC is making a claim of D1.200.000 against the defendant NTC, representing advance rents paid to NTC by a tenant (Sonatex Enterprises), for the period of 2012 to 2013, along with interests and costs.
The judge said the SSHFC submitted that they only discovered this fact in 2014 and that it would be fraudulent and immoral for the defendant (NTC) to retain these rents.
However, Justice Uduma further disclosed that NTC, the defendant, contended that SSHFC’s suit is statute barred and was filed out of time, noting that the suit is caught by the Limitation Act.
The trial judge said the defendant submitted that the plaintiff was aware, or ought to have been aware of the advance payments in 2011 when they took possession of the premises.
According to Justice Uduma, after examining all the evidences, she found that the plaintiff’s arguments regarding fraudulent/immoral conduct and unjust enrichment on an equitable level cannot override the clear legal principle of limitation and privity of contract in the circumstance of the case.
Justice Uduma held that the plaintiff’s claim is statute-barred and legally unsustainable due to the lack of privity contract between the plaintiff and Sonatex.
She said the plaintiff failed to prove that the defendant’s actions amounted to concealment that would postpone the limitation period and has also failed to demonstrate a valid assignment of the tenancy agreement.
Justice Uduma therefore disclosed that the plaintiff does not have a right to claim rents arising from the tenancy agreement between the defendant and Sonatex Enterprises to which the plaintiff was not a party.
The court accordingly dismissed the plaintiff suit against NTC and awarded the sum of D50.000.00 as cost in favour of NTC.
