Facts:

The appellant as defendant was sued by the respondents as claimants at the court below. The 1st claimant as customer to the defendant regularly obtained credit facilities which were secured by way of third party mortgage in favour of the Defendant over property belonging to the 2nd claimant.

The defendant claimed that the 1st claimant defaulted in payment of one of such facilities, and exchanged correspondences to that effect. The claimants in response also claimed not to be in default of payment and thereupon filed a suit against the defendant. The defendant also filed its defence and a counter-claim seeking among other things the payment of the sum of N7,624,276.69 (Seven Million, Six Hundred and Twenty-Four Thousand, Two Hundred and Seventy-Six Naira, Sixty-Nine Kobo) as debt owed by the claimants. The claimants filed its reply and the matter went to trial. The trial court examined evidence adduced by parties, dismissed the claimants claim and granted judgment on the counter-claim in favour of the defendant but not in the sum claimed.

Dissatisfied with the decision of the court below, the defendant appealed to the Court of Appeal.