Upon payment tribute by community B, community A granted land to them and Community B planted economic trees on the land in dispute. This was from time immemorial.

The land was subsequently acquired compulsorily by the Shell-BP in the course of exploration for oil.

The issue was to determine in what proportion the compensation money for the acquisition was to be shared between the two parties.

The High Court, based on two previous judgments agreed by the parties to be the basis of their respective claims without adducing any oral evidence, held that members of community B were licensees and not customary tenants and that they were accordingly not entitled to any share in the compensation money. An appeal was made to the Supreme Court.