OWENA BANK PLC. V. CHIEF M. O. OLATUNJI CHIEF J. O. OLUKAYODE

ONNOGHEN, JCA (DELIVERING THE LEAD JUDGMENT): This is an appeal against the judgment of the High Court of Justice of Ekiti State sitting at Ado-Ekiti delivered on 21st day of March 2000 in suit No. HAD/37/97 by Honourable Justice D. F. Babalola in which he entered judgment against the appellant and in favour of the 1st respondent. The facts of the case include the following: Sometime in 1986 the appellant, upon application by one Kayode Olatunji trading under the name and style of Kaylat Enterprises, granted a credit facility to the said Kayode , who is a son of the 1st respondent. The loan/credit facility so granted was guaranteed by the 1st respondent who used one of his buildings at Ado Ekiti as a collateral and executed Deed of Legal Mortgage dated 18/11/86. In addition to the above, the 1st respondent also signed a personal guarantee form to further secure the credit facilities aforementioned. Later on Kayode Olatunji defaulted in the payment of the loan and interest as a resul…