once a property is on Mortgage, all rights accruing therefrom belongs to the
Mortgage. We think however that this is not the position of the law.
The mortgaged properly is merely a security for the loan of the mortgagor
took from the Mortgage. The rights and privileges on the property still
belongs to the Mortgagor during the subsistence of the mortgage.
Thus it was wrong for the mortgagee to have demanded for such rent, where
there is a subsisting agreement between the mortgagor and a third party.
Accordingly, the intervener has no right to claim the arrears of rent.
On the part of the Defendants, they were right in their judgment to withhold
the payment for fear of paying to the wrong party and this fear is reasonable
in the circumstances.
Accordingly, their non- payment of the arrears of rent to the Plaintiff was not
due to their own fault, the claim of the Plaintiff to the sum of
N100,000,000.00(one hundred million naira) as damages for breach of
covenant, N5,000,000.00( five million naira) as solicitors fees and interest in
the like sum cannot stand; and are hereby dismissed. The 2nd Defendant
is ordered to pay the arrears of rent for the Plaintiff.
For the avoidance of doubt, the 3rd, 4th, 5th and 6th Defendants ought not to
have been joined as parties to this suit and their names are hereby expunged
from the suit.
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