• Latest
  • Trending
Daura v U.B.N PLC: Landmark Supreme Court Decision on ‘Estate and Debt’ Responsibilities after Death

Daura v U.B.N PLC: Landmark Supreme Court Decision on ‘Estate and Debt’ Responsibilities after Death

How Tax Law Affects Remote Workers and Influencers Under New Reform

How Tax Law Affects Remote Workers and Influencers Under New Reform

Atiku, ADC Leaders Visit New Olubadan Oba Ladoja in Ibadan

Atiku, ADC Leaders Visit New Olubadan Oba Ladoja in Ibadan

Hope for Eagles as FIFA Deducts 3 Points from South Africa in World Cup Qualifiers

Hope for Eagles as FIFA Deducts 3 Points from South Africa in World Cup Qualifiers

FG Declares Friday Public Holiday for 2025 Eid-ul-Mawlid

FG Declares Public Holiday for Nigeria’s 65th Independence Day

NELFUND Sets October Date to Reopen Student Loan Portal

NELFUND Sets October Date to Reopen Student Loan Portal

Call-Up Number Controversy: NYSC Clears the Air

FG Makes ‘Final-Year Project’ Mandatory for NYSC Mobilisation

President Tinubu extends Christmas Greetings to Nigerians

FG Summons Dangote, PENGASSAN to Table as Strike Looms

Tuesday, September 30, 2025
  • Login
No Result
View All Result
iDeemlawful
  • Home
  • News
  • Featured
  • Politics
  • LifeStyle
  • Advertise with Us
  • Opinion
  • Campus
iDeemlawful
No Result
View All Result
iDeemlawful
No Result
View All Result
  • Home
  • News
  • Featured
  • Politics
  • LifeStyle
  • Advertise with Us
  • Opinion
  • Campus
Home Commentary
Daura v U.B.N PLC: Landmark Supreme Court Decision on ‘Estate and Debt’ Responsibilities after Death

Daura v U.B.N PLC: Landmark Supreme Court Decision on ‘Estate and Debt’ Responsibilities after Death

by iDeemlawful
May 26, 2025
in Commentary
A A
0

Brief Facts – The deceased, Hon. Justice Kita Odiete Georgeman, obtained a loan of N6,000,000.00 from the respondent bank at 18% interest per annum, but died shortly thereafter. 

Her children (the appellants) obtained letters of administration over her estate, which had a total of N15,372,668.97 in her accounts. They used the funds for funeral expenses and distributed the remainder to beneficiaries without settling the debt owed to the bank.

The respondent sued the appellants as administrators of the estate to recover the loan amount and accrued interest (N4,934,616.90), plus additional interest at 29% per annum until full repayment.

SeeThese

Understanding Capital Markets in Nigeria and the United States of America

THE JUDICIARY ISN’T SADDLED WITH RESPONSIBILITY TO MAKE LAWS, HOWEVER WHAT ARE THE RAMIFICATIONS OF INTERPRETATING SOME STATUTES VIS A VIS THE LAW MAKING POWERS OF THE LEGISLATURE

Iddat al-Wafāt (Widow’s Waiting Period): Its Legal Purposes in Islamic Law and a Comparative Reflection with Customary Practices in Nigeria

Decision of the Trial Court:

ADVERTISEMENT

The trial court dismissed the case. The court held that the defendants (appellant) will only be responsible as administrators of the estate to pay off the loan if the claimants(Respondent) had notified the defendants before they distributed the proceeds from the estate of the deceased.

Dissatisfied, the Respondent appealed to the Court of Appeal, insisting on the right to recover the loan from the estate of the deceased.

Decision of the Higher Courts:

Court of Appeal;

The court of allowed the appeal and gave judgment partially in favour of the respondent. It held that the first duty of the administrator is to settle debts of the estate. It is unjustified to beguile a debtor on the premise that the assets and estate of the debtor has been distributed amongst beneficiaries. The court further held that  the interest over the loan is terminated, because the relationship of the parties was founded on simple contract and death of one party terminated the agreement.

Supreme Court;

The supreme court also upheld the above decision, relying on the case Folarin v. Agusto (2023) 11 NWLR(Pt. 18956) 559;where the court held that “the powers conferrable on an Administrator by a Letter of Administration are wide. It includes the power to hold the real estate as a trustee and also to bear the liabilities of the estate. Put succinctly, the administrator of the estate has the duty to find out and paid any debt incurred by the deceased.

However, while the dissatisfied with the decision of the court of appeal over the termination of interest. The court further restated the law that, although the death of a customer, bring to an end the banker-customer relationship. However, if the relationship is primarily that of a debtor-creditor, an existing obligation to pay money under the contract and entitlement to be paid money under the contract survive the termination of the banker-customer contract. 

Brief comment:

The decision of the Supreme Court in Daura v. U.B.N. PLC is a landmark judgment that clarifies and restates essential principles of estate administration and contract law in Nigeria, particularly as they relate to the obligations arising from loan agreements after the death of a party.

First, the Court rightly emphasized that the death of a debtor does not extinguish a contractual debt owed to a creditor. This aligns with long-standing principles of succession and trust law: liabilities incurred by a deceased during their lifetime are chargeable against their estate. The Supreme Court correctly held that administrators of an estate bear a fiduciary duty to identify and settle all valid debts before distributing the estate amongst beneficiaries. The appellants’ failure to do so, despite having access to sufficient funds, was a breach of that duty.

Secondly, the Supreme Court refined the legal distinction between the banker-customer relationship and the debtor-creditor relationship. While the former terminates upon the death of the customer, the latter survives, especially where the bank’s position is that of a creditor with a legally enforceable contract. This doctrinal clarification is critical in protecting financial institutions and ensuring accountability in estate management.

Additionally, the Supreme Court’s rejection of the Court of Appeal’s position that interest terminates upon death reinforces the sanctity of contracts. It underlines that obligations under a contract, including interest accrual, can continue posthumously unless the contract explicitly states otherwise.

In sum, this decision underscores the responsibilities of estate administrators to act diligently, equitably, and in accordance with the law. It further serves as a cautionary precedent that debts cannot be ignored simply because the debtor is deceased, preserving the rights of creditors and strengthening the legal framework surrounding estate obligations.

Lamid Azeez Arisekola is a 300Level law student at  Usmanu Danfodio University, Sokoto. He can be reached through 07063848823 or lamidazeez8@gmail.com

Tags: Law articles
Previous Post

PROHIBITION OF RIBĀ (INTEREST-BASED TRANSACTIONS) IN ISLAMIC FINANCE: CONCEPT AND SIGNIFICANCE

Next Post

‘We have recovered reasonable amount’ – EFCC gives update on N1.3trn CBEX crypto fraud

Next Read

PENGASSAN, DANGOTE, AND THE PERILS OF UNCHECKED CAPITALISM IN NIGERIA’S OIL SECTOR: WHY PROTECTING UNIONISM MATTERS
Commentary

PENGASSAN, DANGOTE, AND THE PERILS OF UNCHECKED CAPITALISM IN NIGERIA’S OIL SECTOR: WHY PROTECTING UNIONISM MATTERS

...

Read moreDetails
Understanding Capital Markets in Nigeria and the United States of America
Commentary

Understanding Capital Markets in Nigeria and the United States of America

...

Read moreDetails
Magistrate Orders Arrest Of Ex-Judge For Allegedly Beating Bailiff At Residence
Commentary

THE JUDICIARY ISN’T SADDLED WITH RESPONSIBILITY TO MAKE LAWS, HOWEVER WHAT ARE THE RAMIFICATIONS OF INTERPRETATING SOME STATUTES VIS A VIS THE LAW MAKING POWERS OF THE LEGISLATURE

...

Read moreDetails
THE JUDICIARY ISN’T SADDLED WITH RESPONSIBILITY TO MAKE LAWS, HOWEVER WHAT ARE THE RAMIFICATIONS OF INTERPRETATING SOME STATUTES VIS A VIS THE LAW MAKING POWERS OF THE LEGISLATURE
Commentary

Iddat al-Wafāt (Widow’s Waiting Period): Its Legal Purposes in Islamic Law and a Comparative Reflection with Customary Practices in Nigeria

...

Read moreDetails
Commentary

A Critical Appraisal of the Supreme Court’s Position on Processes Signed by Law Firms: Okafor v. Nweke and Olowe v. Aluko

...

Read moreDetails
UNRULY PASSENGERS UNDER NIGERIAN AVIATION LAW: A CRITICAL ANALYSIS
Commentary

UNRULY PASSENGERS UNDER NIGERIAN AVIATION LAW: A CRITICAL ANALYSIS

...

Read moreDetails
Unconscionable Contracts In The Nigeria Entertainment Industry: A Legal Wake-Up Call For Nigerian Artists In View Of The Recent Wizkid And Banky W, 80-20% Deal
Commentary

Unconscionable Contracts In The Nigeria Entertainment Industry: A Legal Wake-Up Call For Nigerian Artists In View Of The Recent Wizkid And Banky W, 80-20% Deal

...

Read moreDetails
MARITAL DESERTION: ABANDONING A MARRIAGE PARTNER OR RUNNING AWAY FROM MARRIAGE
Commentary

MARITAL DESERTION: ABANDONING A MARRIAGE PARTNER OR RUNNING AWAY FROM MARRIAGE

...

Read moreDetails
Next Post
‘We have recovered reasonable amount’ – EFCC gives update on N1.3trn CBEX crypto fraud

'We have recovered reasonable amount' - EFCC gives update on N1.3trn CBEX crypto fraud

Kwara mobile court convicts 135 sanitation violators |

Kwara Law Students Appeal for Immediate Release of Law School Scholarship Funds

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

iDeemlawful

Copyright © 2019 iDeemlawful.

Useful Links

  • About
  • Advertise
  • Editorial
  • Support

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Copyright © 2019 iDeemlawful.