Facts:

The respondent instituted an action against the appellant at the lower court claiming the sum of N50,622,863.72 which emanated from the loan facility granted to the Appellant by the defunct Bank PHB, which later became Keystone Bank Limited. The loan facility initially granted to the appellant was N20,000,000.00 (Twenty Million Naira). It was upon the failure of the appellant to repay the loan, the amount rose to N50,622,863.72.

The appellant’s failure and refusal to liquidate its indebtedness, affected the operations and ability of the Bank in remitting funds back to the depositors, hence, the Bank sold off the appellant’s indebtedness to the respondent and assigned all the rights and interests thereto, to the respondent.

At the trial, the respondent called a lone witness and tendered exhibits. The appellant in addition to its defence, counter-claimed against the respondent. In a considered decision, the lower Court granted the respondent’s claim and dismissed the counter-claim of the appellant.

Dissatisfied, the appellant appealed to the Court of Appeal.