Facts:

The appellant was a customer of the respondent’s precursor, Prudent Bank Plc. In the course of normal banking business, the respondent granted certain credit facilities to the appellant. The appellant refunded some part of the sum obtained but defaulted by failing to honour its obligation to refund the entire loaned sum plus interest despite several demands from the respondent.

Consequent upon which the respondent instituted proceedings at the lower Court to recover the amount outstanding. In response, the appellant filed its defence and asserted that there was no resolution authorising the opening of any bank account with the respondent before the said accounts were opened and that the approval of its supervising Minister was not obtained as required by Article 80 of its Articles of Association for it to obtain any credit facility from the respondent. In its final decision, the lower Court discountenanced the defence raised by the appellant and entered judgment in favour of the respondent.

Dissatisfied, the appellant appealed to the Court of Appeal seeking to upturn the decision of the lower Court.