LOTATEX NIGERIA LIMITED & ANOR V. BANK OF AGRICULTURE

AMINA AUDI WAMBAI, J.C.A. (Delivering the Leading Judgment): This appeal is in respect of a loan facility of N20,000,000.00 (Twenty Million Naira) granted by the Respondent to the Appellants to finance the business of production of surgical and cotton products. The loan agreement was executed on 16/03/1994.

Realising that the Appellants failed to utilize the money for the purpose it was granted, the Respondent called up the loan. The Appellants paid only N15,000,000.00 (N15 Million). Their failure to pay the outstanding balance of the principal and the accrued interest which the Respondent computed to be N59,743,650.59K despite repeated demands, prompted the Respondent to institute the action at the Lower Court, claiming against the Appellants the said sum of N59,743,650.59K plus 21% interest on the 1st October, 2001 until Judgment and 10% thereafter until fully liquidated. The Appellants denied the claim and counter-claimed against the Respondent. Respondent called four witnesses and …