BREAKING: Stamp Duty: Appeal Court dismisses bid to suspend N579 billion payment to Kasmal Services

The Federal High Court’s subsisting judgment in dispute also included 10% interest per annum on the judgment sum for the period from January 1, 2015, to January 31, 2020.

The ruling was delivered on Friday, January 24, 2025, and read by Justice Okong Abang in an application for a stay of execution instituted by the School of Banking Honors against Kasmal, with the CBN and the Attorney General of the Federation listed as parties.

Naijaonpoint previously reported that the Federal High Court judgment, delivered on Friday, October 11, 2024, by Justice Inyang Ekwo, ordered the CBN to pay over N579 billion with associated interest within the stipulated period to Kasmal.

Justice Ekwo had held that the CBN had paid Kasmal the sum of N10.3 billion, representing 15% of remitted stamp duties by all Deposit Money Banks (DMBs) between January 1, 2015, and January 31, 2020, from the CBN NIPOST Stamp Duty Collection Account No. 3000047517, and could not backtrack from its contractual agreements involving Kasmal and the Nigerian Postal Service (NIPOST).

Kasmal’s lawyer, Dr. Alex Izinyon SAN, had submitted that his client was appointed by the Nigerian Postal Service (NIPOST) to represent NIPOST in the collection of N50 on all receipts given by any bank or financial institution in acknowledgement of services rendered concerning electronic transfers and teller deposits of N1,000 and above, in compliance with the Stamp Duties Act and the Nigeria Financial Regulations 2009.

In the CBN and AGF’s 17 reasons listed in their notice of appeal against Kasmal, dated October 24, 2024, Chief Akintola expressed dissatisfaction with the ruling and judgment of the Federal High Court, Abuja.

He maintained that Justice Ekwo “erred in law,” necessitating the Appeal Court to set it aside.

The appellants further submitted that “the alleged funds Kasmal International seeks to recover are public monies, which are part of the Federation Account governed by the provisions of Section 162 of the 1999 Constitution (as amended).”

Akintola argued that, regardless of any previous mismanagement, stamp duties must be paid into the Federation Account and shared only among the three tiers of government.

School of Banking Honors, which also challenged Kasmal’s claims, asked the Appeal Court to suspend (stay) the trial court ruling and judgment while granting it leave to appeal the lower court’s decision.

It sought an order extending the time within which the applicant may seek leave of court to appeal the ruling of the Federal High Court delivered on October 11, 2024, in the instant suit.

“An order granting leave to the applicant to appeal on grounds of mixed law and facts as contained in the proposed notice of appeal against the substantive judgment of the trial court delivered in October 2024.  

“An order granting leave to the applicant to combine the appeal against the said ruling with the appeal against the judgment of the trial court delivered on the same day in the instant suit, since an order granting leave for the appellants to rely on the records of appeal transmitted by the CBN and AGF is already before the court and has been duly entered. 

“An order of stay of execution or enforcement of the judgment of the Federal High Court Abuja delivered on October 11, 2024, in the instant suit, pending the hearing and final determination of the applicant’s appeal,” the company prayed. 

The applicant also urged the Appeal Court to restrain the CBN from implementing any aspect of the trial court judgment, pending the determination of the applicant’s appeal.

The applicant also urged the Appeal Court to restrain the CBN from implementing any aspect of the trial court judgment, pending the determination of the applicant’s appeal.

On his part, Alex Izinyon SAN referred the Appeal Court to his counter affidavit. 

He opposed the application for a stay by the School of Banking Honors, arguing that the ruling and judgment of the trial court, delivered on the same day, were consolidated, implying the reliefs sought by the School of Banking Honors were misplaced.

He said there should not be a proposed notice of appeal and an appeal at the same time.

“There will be too many appeals if this application is granted,” Izinyon contended.

What the Appeal Court Said 

“It is not really clear what the applicant is asking for,” he said. 

“You have filed an appeal; why ask for leave to appeal again?” he asked. 

“In the instant appeal, the applicant has no valid notice of appeal and failed woefully to combine and transmit the record of appeal in this matter.

“To be modest, this application is the worst, reckless abuse of judicial process and a complete waste of judicial time. 

“It is clear that the applicant has no valid or competent appeal upon which it seeks the stay of execution of the subsisting judgment of the trial court. 

“The application is hereby dismissed, and costs of N300,000 are awarded in favor of Kasmal,” the judge ruled.

He said the application was brought in bad faith and a sheer waste of valuable judicial time.