Facts:

Lotus Plastics Limited imported a brand new “Tata” Bus from Bombay India. The bus was put on board ‘M.V. California Highway’ intact; on arrival to Lagos, the bus could not be traced until after a long search lasting three weeks. It was eventually found at the back of a shed one at Roro Port Car Park owned and managed by Nigerian Ports Authority (the 1st defendant in the trial court). The bus was totally vandalized with parts completely gone namely, gear box, tyres, engine, electrical, mechanical and panel parts. As a result plaintiff, Lotus Plastics sued Nigerian Ports Authority Plc and Elder Dempster Agencies Limited in the Federal High Court for US$49,300.00 being the cost of a “Tata” bus and freight and special and general damages.

Nigerian Ports Authority Plc, without filing its statement of defence challenged the competence of the claim filing a motion on notice dated 16-8-96 pursuant to Order 27 Rules 1 and 3 of the then Federal High Court Civil Procedure Rules 1976 and section 72(1) of the Ports Decree No. 74 of 1993 that the action was not commenced within 12 months next after the act, neglect or default complained of.