Facts:

The is an appeal against a judgment of the High Court of Lagos State (the trial court) which was delivered on the 12th day of September 2000.

The Respondent as Claimant, via a Writ of Summon and a Statement of Claim, instituted an action in the trial court against the 1st and 2nd Appellants as Defendants, for the recovery of debt of a loan/credit facility of ₦4 million which was obtained from the appellant in 1997, and had ballooned to ₦8,027,707.17 as at the12th day of September 2000, due to irregular repayment of the loan as and when due.

The Defendants who filed a joint Statement of Defence but did not give evidence and rested their case on the Claimant’s case, on the other hand, contended that the offer of the loan facility to them was made by a third (3rd) party called Nigbel Merchant Bank of Nigeria Limited, and not the claimant bank; on account of which the defendants held the position that on the grounds of lack of locus standi and privity of contract, the claimant bank could not sue for recovery of the loan or credit facility.

The trial court upon consideration of the issues and evidence placed before it delivered judgement in favour of the claimant bank, on the ground that the defendants who had transacted with the claimant’s bank in the name it sued, and had made several draw-downs and some repayments to the claimant bank, could not be heard to turn round to deny the claimant bank on the aegis of privity of contract and a supposition of lack of locus standi by the claimant bank to sue for recovery of the outstanding monies due from the loan/credit facility transaction.

The defendants being dissatisfied with the decision of the trial court appealed to the Court of Appeal.