CROWN MERCHANT BANK LIMITED V. LEADWAY ASSURANCE COMPANY LIMITED

MOHAMMED, J.C.A. (Delivering the Leading Judgment): In an action filed by the appellant as plaintiff by a writ of summons dated 17/12/91 and placed under the undefended list at the trial Kano State High Court, the appellant claimed against the respondent which was the defendant the sum of N3million naira or any part thereof that is left unpaid and interest. The basis of the appellant's action was a bond described as a Performance Guarantee Bond under which the respondent guaranteed that it would pay the sum of N3 Million Naira or any part of it that remained unpaid which it had guaranteed on behalf of a company Messrs Hassan Ali Yassin (Nigeria) Limited to pay the appellant in the event that company failed to perform its obligations. The respondent on being served with the marked writ of summons through its learned counsel duly filed its notice of intention to defend the action dated 15/4/92 with a supporting affidavit slating the grounds of its defence. On the date fixed for the hear…