KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN, JSC (Delivering the Leading Judgment): This is an appeal against the judgment of the Court of Appeal, Enugu Division, delivered on 7th July 2005 dismissing the appellants appeal and affirming the decision of the Enugu State High Court delivered on 20th December, 2000.
The facts that gave rise to this appeal are as follows: On 8th July 1987, the National Orthopaedic Hospital, Enugu entered into two contracts Exhibits A and B, with the appellant for the supply, delivery and installation of (a) X-Ray equipment and spare parts and (b) Prosthetic and Orthotic equipment from SIEMENS Aktiengessellschaft (AG) in Germany. In order to facilitate the procurement of letters of credit by the appellant from SIEMENS Aktiengessellschaft of Germany, the contract sum was paid in full. The appellant accordingly opened Letters of Credit with his bank, Allied Bank of Nigeria Limited. It later transpired that the Letters of Credit were only procured in respect of so…