The Court of Appeal in Abuja has ruled in favor of the Central Bank of Nigeria (CBN) over a N579bn stamp duty dispute with Kasmal International Services.
The appeal court in a judgment on Wednesday also overturned a Federal High Court judgment that had ordered the CBN to pay Kasmal N579bn for its alleged role in stamp duty collection.
Justice Adebukola Banjoko, delivering the majority judgment (2-1) of the Appeal Court, sided with the CBN’s legal team in overturning the lower court decision on the N579bn stamp duty dispute.
The judge stated that Kasmal had no legal right to be engaged by the Nigerian Postal Service (NIPOST) for stamp duty collection from the outset.
Justice Banjoko also held that, in the final analysis, the Appeal Court concluded that Kasmal lacked the requisite locus standi (legal authority) to initiate the suit or claim any lawful entitlement or commission.
She ruled: “The suit as constituted is fundamentally defective.
“Similarly, you cannot give what you don’t have.”
Speaking further, Justice Banjoko also ruled that the Federal High Court, per Justice Ekwo, “erred in declaring Kasmal’s entitlement to the said commission when in law there was no legal contract ab initio (from the beginning) between first respondent (Kasmal) and NIPOST.”
However, in a minority judgement, Justice Okong Abang of the Appeal Court said he found it extremely difficult to agree with the majority judgement that the transaction is illegal.
He held: ”My conscience will not allow me if I should follow the majority.
“The doctrine of unjust enrichment frowns at a party who uses the law to retain the benefit conferred by another without offering compensation.”
Pan-Atlantic Kompass reports that the case, rooted in a contentious agreement between Kasmal International Services and the NIPOST, saw Kasmal claim entitlement to a 15% commission on stamp duties collected from Deposit Money Banks (DMBs) between January 1, 2015, and January 31, 2020.
Kasmal’s legal team, headed by Dr. Alex Izinyon (SAN), argued that their client was appointed by NIPOST to collect a N50 charge on bank receipts for transactions of N1,000 and above, as mandated by the Stamp Duties Act and Nigerian Financial Regulations 2009.
The Federal High Court, under Justice Ekwo, had initially sided with Kasmal on October 11, 2024, ordering the CBN to pay the colossal sum with an additional 10% annual interest.
However, the CBN and the Attorney General of the Federation (AGF), represented by Chief Niyi Akintola, countered with a 17-ground appeal filed on October 24, 2024.
The appellants further argued that “the alleged funds Kasmal International seeks to recover are public monies, which are part of the Federation Account governed by the provisions of Section 162 of the 1999 Constitution (as amended).”
