Mistakes occur—especially in the age of technology. One common error is sending money to an incorrect bank account by mistake. For instance, you are intending to send money to “James,” but actually send it to “Sarah,” someone you do not know. In this case, it may not be easy to get in touch with “Sarah” to claim a refund, and the obligation to remit to “James” still remains. Time thus becomes of the essence, and recovery of the money is paramount.

Where there is no willing return by the recipient, a Court Order typically must be sought in order to reclaim the funds transferred in error.

�What You Need to Prove in Court

In order to recover funds transferred in error successfully, your case must show:

1. No connection between the sender and the recipient.
2. The transfer was not intended or done as part of a transaction.
3. Unjust enrichment—the recipient gained a benefit unjustly and should not be permitted to retain it.

First Step: Inform the Banks

Inform your bank and the recipient’s bank as soon as possible about the error. Even though the bank cannot refund the money or disclose the recipient’s contact information without a court order, they can freeze the account temporarily to prevent the money from being withdrawn. This will make the recipient willing to refund the money voluntarily—though this is not guaranteed, especially if they do not have your contact details.

Attending Court

You are to file an application before the court that is competent. The competent court depends on the amount involved and where you find yourself. For example, if you are in Lagos State:

• If the amount is less than ₦10,000,000, you may file before the Magistrate Court.
• If the amount is ₦10,000,000 or more, the High Court will have jurisdiction.

You will be referred to as the Applicant, and the recipient and the recipient’s bank will be referred to as the Respondents. Name all parties exactly as they are named on the records of the transaction.

The action should be filed by an Originating Application, asking the court to order the recipient’s bank to reverse and refund the money. The application should be supported by:

• An Affidavit (sworn by you or a company representative, attaching proof of the transaction).
• A Written Address explaining your legal arguments.

Service of Court Documents

Once the application is filed, it must be properly served on all parties. Without proper service, the court lacks jurisdiction and cannot proceed.

• The recipient’s bank should be served at its head office.
• If the recipient’s address is not known, you must apply for substituted service. This allows the court documents to be posted at a public place—most often the bank or courthouse wall.

Observation: Posting documents via the bank itself is usually not permitted, as the bank is not obligated to forward them.

Court Hearing Process

The court will receive the application only after it has determined that all parties involved have been served in good faith. Neither the recipient nor the bank will be in court unless they have a reason to contest the case. If they choose to answer, they will need to submit Counter-Affidavits against which you can reply.

There is no trial as a matter of course; the court adjudicates the case as an ordinary motion. The judge might request clarification, so it is preferable that the Applicant (or representative) attends.

After hearing the case, the date for judgment will be fixed.

Enforcing the Judgment

Upon judgment having been passed, request for a Certified True Copy (CTC) of the judgment from the registrar of the court. This will be served on the recipient’s bank to recover the refund.

The bank will subsequently be legally obligated to debit the recipient’s account and credit your account. In case the recipient’s account is in a negative balance, the bank will continue crediting you from the account until they have recovered the full amount.

Key Points to Remember

• The argument here is not in contract or tort, but in restitution—a principle of common law.
• The court only acts to reverse unjust enrichment where an individual enriches himself unjustly at another’s expense.

The court will look at:

1. Was there actually a mistake?
2. Did the mistake lead to the wrongful transfer?
3. Does the recipient have a good right over the money?
4. Is there any good reason why the money should not be returned?

In short, if you send money to the wrong person by mistake and they refuse to give it back voluntarily, there is a clear remedy under the law—provided the correct legal procedure is followed in good time.