Facts:

Sometimes in 2006 the Respondent then known as Intercontinental Bank Plc, granted a term loan of Two Billion Naira to the Appellant for the purpose of financing the purchase of blue chip shares. The purchased shares were to be under a lien in favor of the Respondent at the Central Securities Clearing System Limited. This was to serve as part of the security for the loan. The Respondent thereafter commenced charging interest on the loan. The Appellant did not challenge the interest being charged as it believed that the Respondent had complied with the terms and conditions of the loan by utilizing the loan to purchase shares of Intercontinental Bank Plc in the Appellant’s name within 14 days of the Appellant’s acceptance of the loan offer letter as agreed. Upon investigation much later, the Appellant discovered that the Respondent did not utilize the loan as agreed. The Appellant therefore concluded that the loan had automatically terminated in accordance with the terms of the loan contract.

It is the Appellant’s case that the Respondent failed to buy the shares even after debiting the Appellant’s account with the N2 Billion loan obtained for the purpose of buying Intercontinental Bank shares. Matters came to a head when the Respondent sent a notice to the Appellant alleging that the term loan facility had an outstanding balance of N1,458,309,482.11 and that by virtue of a Loan Purchase Agreement between the Respondent and Asset Management Corporation of Nigeria (AMCON), the Respondent had assigned the debt to AMCON.

Consequent to the above the Appellant claimed against the Respondent at the lower Court. The Respondent in response denied most of the claims. After hearing from both parties the learned trial Judge held that there was evidence of the Appellant’s indebtedness to the Respondent and dismissed the claims of the Appellant.

Dissatisfied with the decision of the lower Court, the Appellant appealed to the Court of Appeal.