The Presiding Judge, Benin Judicial Division of the National Industrial Court, Hon. Justice Adunola Adewemimo has dismissed the preliminary objection filed by one Emmanuel challenging the jurisdiction of the Court to hear the matter brought by the First Bank of Nigeria Ltd bordering on loan recovery for lacking merit.

Justice Adewemimo held that the cause of action between the First Bank of Nigeria Ltd and Emmanuel arose out of the employment relationship and falls within the ambit of the jurisdiction of the court.

From facts, the Claimant- the First Bank of Nigeria Ltd is claiming before the Court for the recovery of N32,216,167.52 (Thirty-Two Million, Two Hundred and Sixteen Thousand, One Hundred and Sixty-Seven Naira Fifty-Two Kobo) outstanding balance of a refinance Loan granted to Emmanuel while in the employment of the bank.

In defense, the defendant- Emmanuel asked the court to strike out the case on the ground that the subject matter is for the recovery of loan and the Court is not constitutionally empowered with the jurisdiction to entertain matters pertaining to the recovery of the loan.

Learned counsel to Emmanuel contended that the contract of employment and personal loan are distinct from each other with different subject matters, and the court cannot hear or determine matters involving breach of contract not related to the master and servant relationship.

The Counsel to First Bank, F. N. Owakwue Esq posited that Emmanuel would not have been entitled to the loan if he was not a staff of the Bank and that the Staff Home Loan and advances granted and utilized by Emmanuel are incidental to and connected with his employment, urged the Court to dismiss the objection in its entirety.

In reply, Emmanuel’s counsel submitted that the provision of the constitution cannot be extended to confer jurisdiction on the court to adjudicate over issues of personal loans from an employer to employee, that the Loan Facility granted to his client is a personal loan, and is not interdependent on the contract of employment.

Delivering the ruling, the presiding Judge, Justice Adunola Adewemimo affirmed court jurisdiction to entertain a claim related and connected with employment on the basis that the facility granted to Mr. Emmanuel was premised on his employment with the bank as shown through the exhibits tendered.

Justice Adewemimo held that a thorough perusal of the exhibits tendered revealed that the loan granted to Emmanuel was for the staff of the Bank, and therefore cannot be divorced from the employment relationship.