Facts:
The appellant had entered into a Consultancy Service Agreement with the respondent, later amended on September 15, 2011. The respondent was engaged to recover funds owed to the State by various federal agencies and to reconcile financial records. The respondent successfully recovered ₦18.7 billion, entitling him to 15% in fees which is the sum of ₦2.82 billion. The appellant refused to pay, claiming the funds were recovered without the respondent’s involvement.
The respondent invoked the dispute resolution clause in the agreement, which required arbitration. When both parties could not agree on an arbitrator, the Chief Judge of the FCT High Court appointed Prof. Paul Obo Idornigie on April 19, 2013. Both parties fully participated in the arbitration. On January 17, 2014, the arbitrator awarded the Respondent ₦2.82 billion plus interest.
On the 13th day of February, 2014, the respondent commenced an action before the High Court of the Federal Capital Territory, by way of Originating Motion, for recognition and enforcement of the award. The appellant did not file any counter-affidavit to the Originating Motion initially, having been duly served with the Originating Motion. Rather, he filed two applications, the first was a motion on notice filed on the 30th day of June, 2014, challenging the competence of the respondent’s suit on the ground that it constituted an abuse of Court process. The second application was filed on the 21st day of November, 2014, praying the trial Court to strike out the respondent’s suit. The two applications were heard and dismissed in a consolidated ruling of the trial Court delivered on the 26th day of February, 2015, and the hearing of the main application was fixed for the 16th day of April, 2015.
When the Originating Motion came up for hearing on the 16th day of April, 2015, (that is, after a year and two months of its filing), the appellant had still not filed a response to it on its merits. Rather, the appellant filed an application for stay of proceedings of the trial Court on the ground that there was a pending appeal against the aforesaid consolidated ruling of the trial Court before the Court of Appeal. The respondent did not oppose the application for stay of proceedings and the Court granted same. The appeal was however dismissed and the trial Court proceeded to take the respondent’s Originating Motion and accordingly adjourned for judgment. Before judgment could be delivered, the appellant filed a Notice of Preliminary Objection on the 11th day of October, 2016, this time challenging the jurisdiction of the trial Court to entertain the suit. The appellant also sought leave of Court to file his counter-affidavit to the Originating Motion (more than two years after it was served on the appellant). These applications were not opposed to by the respondent. The appellant’s sole ground for opposing the Originating Motion was based on the appointment of the arbitrator.
The trial Court, by its judgment recognized the Arbitral Award for enforcement in favour of the respondent. The respondent appealed to the Court of Appeal and same was dismissed. Further aggrieved, the appellant appealed to the Supreme Court.