ASSOCIATED DISCOUNT HOUSE LTD V. AMALGAMATED TRUSTEES LTD

PATS-ACHOLONU, J.S.C. (Delivering the Leading Judgment): This appeal arose from an action filed by the appellant against the respondent. The parties had entered into an agreement whereby the appellant advanced by way of a commercial paper facility the sum of N120m to the respondent's company for 90 days only subject to an interest payable on the commercial paper. The facility was completely drawn. The security for the facility was a house, property of the respondent situate at 24A Campbell Street, Lagos, and the parties covenanted that the documents shall be deposited with the appellant. At the expiration of 90 days, the money so invested was not paid back and worse still, the respondent caused the sum to be rolled over without the express consent or permission of the appellant. When the appellant made several demands for the repayment of the facility and the interest due, and the respondent refused or failed to pay, the appellant was forced to institute an action in the Federal High …