Facts:

The plaintiff/respondent commenced an action under the undefended list procedure at the Cross Rivers State High Court, Calabar claiming the sum of N680,000.00 (Six Hundred and Eighty Thousand Naira) being money loaned to the defendant/appellant. The appellant filed a notice of intention to defend, together with an affidavit to which it attached exhibits in aid of its defence. Subsequently the parties executed and filed in court a compromise agreement based on which the appellant paid the sum of N540,000.00 (Five Hundred and Forty Thousand Naira) to the respondent, purportedly in full and final settlement of the claim. In view of this the appellant filed an application seeking an order striking out the suit on the grounds that the parties had settled the suit by compromise. After hearing arguments on the application the learned trial judge, Eyamba-Idem C.J in his ruling dismissed the application and transferred the suit to the general cause list.