BELOXXI & COMPANY LIMITED & ANOR V. SOUTH TRUST BANK & ORS

CHINWE EUGENIA IYIZOBA, JCA (Delivering the Leading Judgment): This appeal is against the judgment of Archibong J. of the Federal High Court, Lagos Division in Suit No. FHC/L/CS/113/2005 delivered on the 15th day of November, 2012. The facts leading to the suit and the appeal may be summarized thus: Sometime in 2003, the 1st Appellant sought and obtained a loan from the 1st Respondent for the purchase of biscuits manufacturing equipment in the sum of $2,207,600.00 (Two Million Two Hundred and Seven Thousand Six Hundred U.S, Dollars). Two types of guarantees with different consequence were provided to secure the loan. The first type of guarantee was the personal guarantee of the 2nd Appellant who is a Managing Director/Chief Executive Officer of the 1st Appellant. The loan documentation included a Promissory Note and a Letter Agreement both dated 2nd March 2004 (Pages 16 - 25 of the Record of appeal). The second type of guarantee was a form of insurance provided to the 1st Appellant by…