Facts:

The appellant and the respondent maintained a customer and banker relationship. In the course of the relationship, the appellant issued a cheque through its bank causing a draft in the sum of N500,000.00 (Five hundred thousand Naira) to be raised, and the same was handed to the appellant who in turn handed it to Sam Kay Ventures Ltd for payment at the respondent’s Akure branch. The draft was issued on 18/9/95. The instrument was paid into payee’s bankers – Afribank on the 22nd of September, 1995 at its Akure branch of the respondent under what it called special clearance. However, the cheque later was made to undergo routine clearing. It was the case of the appellant that the payment had been made against its having been countermanded and that its account with respondent should have been credited with the amount on the cheque.

The appellant again issued another cheque this time to Nansen Associates Ventures Nigeria Ltd on 11/3/96 for N500,000.00 (Five hundred thousand Naira). It was dishonoured on presentation on the ground of insufficiency of fund in the account of the appellant. The appellant instituted the suit in the trial