MORECAB FINANCE (NIG.) LIMITED V. EZEKIEL OKOLI

AKPABIO, JCA (Delivering the Lead Judgment): This is an appeal against a decision of the High Court of Anambra State of Nigeria, holden at Onitsha, by coram Amaizu, J. (as he then was) in suit No. O/226/97 delivered on 18th February, 1998, which was placed on the undefended list.

In the said suit the plaintiff (now the appellant) claimed from the defendant (now the respondent) the sum of N3,142,823.00 (Three million one hundred and forty-two thousand, eight hundred and twenty-three naira) plus interest at the agreed rate of 36% per annum until judgment and thereafter at the rate of 5% per annum until the entire sum is liquidated.

The said claim was supported by a 13-paragraph affidavit to which were exhibited 5 documents (exhibits A - E) showing how the loan was granted. The initial letter of application typewritten and signed by the defendant was dated July, 1992. In it the defendant applied for a loan of N1,575,000.00 of which the sum of N689,000.00 was to be used to liquidate a deb…