A Lagos State Magistrate Court has ordered Ganiu Owolabi Ajose to pay the sum of N2.5 million, representing his outstanding indebtedness to Mr. Olalekan Uthman, arising from a N3 million loan he obtained from him.
Court Ruling and Costs
Magistrate Sekinat Omotoyosi Salihu, in her summary judgment, also awarded the sum of N200,000 as costs in favor of Uthman against the defendant, Ajose. The judgment was delivered in suit number MCIK/SCC/76/2026, filed by the claimant Uthman via a complaint form (Form SCA2) on February 26, 2026.
Details of the Loan
The claimant averred that the defendant obtained a loan of N3 million from him on March 18 and 19, 2025, and repaid only N500,000, leaving an outstanding balance of N2.5 million unpaid. Alongside the complaint form, an application for summary judgment (Form SCA3A) was filed on the same date, wherein the claimant prayed the court for a summary judgment against the defendant.
During the pendency of the case, the defendant failed to appear in court or enter his defense despite being served with necessary documents through an order of substituted service via email on March 10, 2026, as evidenced by an affidavit of service deposed by Sheriff Babajide Ogeyinbo of the Small Claim Court on the same date.
Magistrate's Findings
In her judgment, Magistrate Salihu held that the defendant was given ample opportunities to respond to the action filed against him, which he failed to do appropriately by filing a counter affidavit or presenting himself in court. She stated, “His failure to appropriately respond to the application by filing a counter affidavit in compliance with Article 7 of the Practice Directions, 2023, or even presenting himself in court is an indication that he indeed has no defence to the instant suit.”
The court said it was convinced, relying on the affidavit of service, that the defendant was aware of the pendency of the suit but absented himself in wilful disobedience to the summons of the court. Although the judgment was delivered on April 10, 2026, the certified copy was made available to our reporter yesterday in Abuja.
Summary Judgment Granted
Magistrate Salihu added: “This court, having thus satisfied itself that all the prerequisites for the hearing of this suit had been complied with as aforesaid, heard Emmanuel Ochai, the claimant’s counsel, move the claimant’s application for summary judgment in open court on May 30, 2026, whereat, counsel relied on all the averments in the supporting affidavit and annexed exhibits in proof of the claimant’s claims, urging the court to grant the reliefs as prayed in the said application.
“I have carefully considered the affidavit evidence before the court, particularly the documentary evidence presented by the claimant, and I find, by a calm reading of the exhibits attached to the claimant’s application for summary judgment, that a prima facie claim is made out against the defendant, who neglected to defend the application.
“The evidence before the court therefore stands unchallenged and uncontroverted. The law is settled that where evidence is uncontroverted, the court has a duty to act on such evidence where same is credible.
“In the instant case, I have carefully looked at the affidavit in support and documentary evidence before the court. Exhibit ‘A’ evidences the formal demand of the sum owed as required by law, while exhibit ‘B’ is the transaction receipt from GTCO showing the transfer of N500,000 to the claimant by the defendant. These exhibits corroborated the evidence of the claimant.
“The law has become banal that where a creditor writes a demand letter, which the supposed debtor fails to react to, the silence of the latter leads to a presumption of admission by the conduct.
“Therefore, the failure of the defendant to react to exhibit ‘A’ demanding a refund of the subject sum amounts to an admission by conduct of the contents of the letter. I therefore find the above stated facts against the defendant credible and established.
“Based on the uncontroverted evidence on record and the settled position of the law, it will be appropriate, in the circumstance of the present case, to grant the claimant’s claim for the sum of N2.5 million, being the sum owed to the claimant by the defendant. This, this court finds upon preponderance of evidence in the claimant’s favour that the defendant is liable to pay same to the claimant.”
The court further awarded costs of N200,000 in favor of the claimant against the defendant as compensation for the expenses incurred in the litigation.
