Kwara State Internal Revenue Service (KW-IRS)

Court of Appeal favours KW-IRS, claims of N567.7m struck out

The Court of Appeal, Ilorin Division, on the 10th of September, 2021 has struck out a case instituted against Kwara State Internal Revenue Service (KW-IRS) by Mr. Adeyemi Sanni Sheriff, Mrs. Adedoyin Sanni, and Mr. Bamidele Ogunlowo, trading under the name and style of “Mazars Consulting” in respect of the recovery of a total sum of N569,765,358.43 (Five Hundred and Sixty Nine Million, Seven Hundred and Sixty Five Thousand, Three Hundred and Fifty-Eight Naira, Forty-Three Kobo) for an alleged commission on a purported service rendered to the KW-IRS as a Tax Audit Monitoring Agent (TAMA).

Convinced by the merit of the case, the Plaintiffs (Mazars Consulting) through her counsel, A. K. Ajibade & Associates instituted the action under the Undefended List procedure.

Defendant (KW-IRS) promptly joined issues with the Plaintiffs by filing reasonable grounds for defense, all to the fact that the Plaintiffs have not rendered any service that could warrant the payment of such humongous claims being sought against the Defendant.

The Plaintiffs got judgment in their favour against KW-IRS on the 5th November 2020 at the Kwara State High Court in a ruling delivered by Justice E. B. Mohammed.

Dissatisfied by the judgment of the Kwara State High Court, the Service filed in an appeal against the judgment of the court before the Court of Appeal, Ilorin Division, and at the same time, filed and moved a motion for the stay of execution of the said judgment pending the determination of the appeal.

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Deciding on the appeal, the Court of Appeal formulated two issues vis-a-vis disclosure or non-joinder of the proper parties before the Court and the propriety or otherwise of not moving the entire claims of the Plaintiffs from the Undefended List Procedure to the General Cause List by the trial Court.

In the end, the appellate Court in a unanimous decision struck out the entire claims of the Plaintiffs on the 10th day of September 2021, as read by the Presiding Justice of the Court of Appeal, Ilorin Division, U.I. Ndukwe-Anyanwu, having resolved the entire issues in favour of the KW-IRS.

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