Facts:

The appellant maintained bank accounts with the 1st and 2nd respondent banks. Sometime in April 1990 the appellant instructed the 1st respondent to issue a draft in the sum of N447,000.00 (Four hundred and forty seven thousand Naira) to the order of the appellant for payment into the appellant’s account with the 2nd respondent. However, the 1st respondent issued the draft in favour of the 2nd respondent. When the appellant discovered that the sum had been debited from its account it wrote a letter dated 1st September 1994 to the 1st respondent requesting clarification on the debit of the N447,000.00 (Four hundred and forty seven thousand Naira). The appellant through its Solicitors wrote two separate letters of demand to the 1st and 2nd respondents to which the 1st respondent responded informing the appellant’s solicitors that the matter was being investigated. The appellant as plaintiff subsequently filed an action at the Lagos State High Court claiming that the appellants had converted the N447,000.00 (Four hundred and forty seven thousand Naira) and claimed a refund of the sum, the commission of N5.00 (Five naira) paid for the draft, N2,000,000.00 (Two million Naira) as special and general damages and interest on these sums.

The 1st respondent filed an application to have the suit dismissed on the ground that it was statute barred. The application was heard and granted. Dissatisfied with the decision of the High Court the appellant appealed to the Court of Appeal.