Facts:

The respondents – a construction contractor – as plaintiff in the high court, sued under a N16 million building contract for loss profit of N2.5 million. It also sought an Injunction restraining the defendant its servants, agent and/or workmen from interfering with the plaintiff right of access to its property and the contract site. However, before pleadings were ordered parties agreed to submit to arbitration. Counsel for the parties consented to an order for stay of further proceedings pending the out come of the arbitration. Arbitral proceedings commenced the arbitrators prepared and submitted an interim award. Defendant counsel wrote to the plaintiff counsel confirming that it would pay the sum of N1.75 million in full and final settlement. However, the bank denied instructing the settlement. This prompted the plaintiff/respondent to file a motion for judgment based on the defendant counsel’s letter while the consent order for stay of proceedings was still subsisting, the arbitration was also pending. The appellant filed a Notice of Preliminary Objection challenging the jurisdiction of the High Court to hear the motion during the pendency of the arbitral proceeding and the order of stay of proceedings granted earlier. The trial court overruled the objection and held that it had jurisdiction to entertain the motion on notice and adjourned for the hearing of the motion. The plaintiff (now appellant) appealed the decision.