Facts:

The respondents sued the appellants at the Federal High Court, Lagos division to recover a facility granted to the 1st appellant by the defunct Afribank PLC which was guaranteed by the 2nd and 3rd appellants. The respondents are successors-intitle of Afribank and sought to recover the unpaid facility of N1,175,470,475.87 (One Billion, One Hundred and Seventy-Five Million, Four Hundred and Seventy Thousand, Four Hundred and Seventy Five Naira, Eighty Seven Kobo) from the appellants. The respondents contended that the 1st appellant having received and utilized the facility and the 2nd and 3rd appellants being the guarantors, were under obligation to repay it. The trial court gave judgment in favour of the respondents and held that the appellants were liable to repay the facility and that the defence of lack of locus by the respondents to institute the action against the appellant was of no moment. The trial court further held that since there was no dispute or denial by the appellants that the facility was granted to the 1st appellant, they were under a duty to repay it. The appellants became aggrieved and filed a notice of appeal at the Court of Appeal, Lagos Division challenging the decision of the Federal High Court and urging the Court of Appeal to reverse the decision.

The major contention of the appellants in the appeal was that the respondents lacked the locus standi to institute the action having unilaterally varied the interest rate. The appellants also contended that the trial court failed in its primary duty to properly evaluate evidence adduced by the parties before the court.