Facts:

The Respondent by a loan and mortgage agreement dated 26/8/1992 took a term loan of US$921,080.00, U8$25,094.00 and N1,568,000.00 from the 1st Appellant to acquire additional plant, equipment and machinery for its biscuit factory project (Kan Biscuit Factory) situate at Aba in Abia State. In default, the 2nd Appellant was appointed as Receiver. On this note, the Respondent, who was the Plaintiff, at the Federal High Court (trial Court) sued the Appellants as Defendants challenging the appointment of the 2nd Appellant by the 1st Appellant as Receiver in respect of the assets of the Respondent, an order directing the Appellants to reconcile its account with the Respondent and an order of injunction restraining the Appellants from taking over or disposing of the Respondent’s assets. Before the proper hearing of the suit, the Respondent also by a motion for interlocutory injunction sought to restrain the Appellants from selling KAN Biscuit Factory. The application was however refused by the trial court. This prompted the Respondent to appeal to the Court of Appeal (lower Court).

Nevertheless, while the substantive matter was pending before the trial court and the interlocutory appeal before the lower court, the Appellants went ahead and sold the factory of the Respondent to DE-ENDY INDUSTRIAL COMPANY LIMITED. Consequently, the Respondent vide a motion on notice before the Federal High Court where the substantive matter was pending, sought to set aside the sale being made pendente lite. The trial court delivered its ruling on the motion and thus set aside the sale.

Dissatisfied, the Appellants appealed to the lower Court, which dismissed the appeal and upheld the decision of the trial court. Further aggrieved, the Appellants appealed to the Supreme Court.