FIRST CITY MONUMENT BANK LTD V. STANDARD ALLIANCE INSURANCE COMPANY LIMITED

GARBA JCA (Delivering the Lead Judgment): The appellant had gone to the court below; the Lagos State High Court, with a claim against the respondent for the outstanding part of a bond issued upon a credit guarantee bond by the respondent. The case as put forward by the appellant in the statement of claim, was that the respondent issued a guarantee bond to secure a loan/over draft granted by the appellant to Fort Knox Investment Ltd. as borrower. That Fort KnoxInvestment Limited had failed to discharge its obligation on the loan/overdraft facility and sothe respondent had become bound to the appellant for the outstanding balance on the security of the guarantee bond issued by the respondent on the facility which remained in force and effective. During the trial, Counsel to the respondent raised the issue of lack of jurisdiction on the part of that court to entertain the matter on the ground that it was a banking matter over which the Federal High Court had exclusive jurisdiction unde…