Facts:

The plaintiff/1st respondent is a businessman who deals in the supply of raw skin for tanning while the 1st defendant/1st appellant is a registered company in Nigeria, which later went into receivership. The 3rd defendant/2nd appellant is a receiver manager appointed by Union Bank of Nigeria Plc who is a holder of debenture stock in the 1st defendant/appellant.

The 1st respondent had been a regular supplier of raw skins to the 1st appellant. Whenever supplies were made by the plaintiff the 1st defendant/appellant, payments for the supplies were made by the 1st defendant or the 2nd defendant who is a sister company of the 1st defendant/appellant. The transaction between the plaintiff/respondent and the 1st defendant/appellant was in stages, first, tanning of the skins supplied and second, sale of the tanned skins on agreement on the price of the skins. Sometime before the 1st defendant/appellant went into receivership, the plaintiff/respondent had supplied it raw skins worth N3,469,646.97 (Three million, four hundred and sixty nine thousand, six hundred and forty six naira, ninety seven kobo) for which the plaintiff/respondent has not been paid despite repeated demands and acknowledgment of the indebtedness by 1st defendant/appellant. The second appellant on his appointment as receiver and, without the price being agreed upon, disposed of the goods.