Facts:

Sometime in 2008 the appellant and respondent entered into a contract where the appellant agreed to buy a total of 25,820.112MT of Automotive Gas Oil (AGO) also known as Diesel, from the respondent (as suppliers and shippers). The specification of the quality of the product was determined in the contract agreed by the parties. The respondent shipped the cargo off shore Cotonou where the appellant took delivery via another ship. Customers of the appellant however complained that the product failed to meet the standard set by the Nigerian government, and demanded for a refund of their money paid to buy the AGO. This caused huge financial loss to the appellant.
Aggrieved by the respondent’s failure to honour the terms of the contract with respect to quality of the AGO, the appellant instituted an admiralty action against the respondent at the Federal High Court. The respondent filed an objection seeking to challenge the jurisdiction of the lower court on the ground that the action was not an admiralty matter. The court in its ruling struck out the matter on the ground that it lacked jurisdiction to entertain the matter. Dissatisfied by the decision of the lower court, the appellant appealed to the Court of Appeal wherein it sought inter alia the determination of the court on whether the lower court was right to strike out the matter instead of transferring same by virtue of Section 22(2) of the Federal High Court Act.