UWAIS, JSC (Delivering the Lead Judgment): An action was filed in the Federal High Court, Lagos, by Ceekay Traders Limited (respondents) against the American International Insurance Co. (appellants) in which the respondents claimed the sum of ₦2,742,318.00 as indemnity under a marine insurance policy covering a cargo of rice shipped in Bangkok for Lagos. The vessel carrying the rice was the “JAL SEA CONDOR”. On 6th July, 1978, the ship sank with all its cargoes off the coast of South-West Africa. After the statement of claim filed by the respondents was served on the appellants, the latter entered a demurrer under Order 27 rules 1 and 3 of the Federal Revenue Court (Civil Procedure) Rules, 1976 for the suit to be dismissed for want of jurisdiction by the Federal High Court.
The objection raised by the appellants was overruled in a well- considered ruling by Karibi-Whyte, J., (as he then was). The appellants then appealed to the Federal Court of Appeal. By a majority judgment of two (…