The respondent is a limited liability company licensed to carry out the business of insurance underwriting. The 1st appellant is government steel manufacturing company. The 2nd appellant is the Minister of Power and Steel and the supervising minister in respect of government departments, companies and parastatals under the ministry including the 1st appellant. The 3rd appellant, Central Bank of Nigeria (CBN) is the banker of federal funds.

In 1996, the 1st appellant requested the respondent to provide insurance cover for the Blast Furnaces of the Steel Plant for January to December 1996 covering an insured risk in the sum of N10 billion naira. The respondent duly provided insurance cover and confirmed same to the 1st appellant. A debit Note No.00356 was forwarded for the sum of N25,000,000.00 (Twenty five million naira) representing the premium payable.

The 1st appellant acknowledged receipt of the insurance cover and Debit Note on the 8th December 1996 and also acknowledged the receipt of the policies by letter dated 6th day of August 1997 but did not make payment for the Insurance Policy as it was unable to settle the account by itself.

The total sum of N226, 000,000.00 (Two hundred and twenty six million naira) was consequently set-aside in the 2000 budget, which was enacted into law as Appropriation Act, 2000. The respondent in a bid to receive the sum of N226, 000,000.00 (Two hundred and twenty six million naira) petitioned the Commission of Inquiry for the Assessment of failed contracts for Construction, Supplies and Services regarding the failure of the 1st appellant to perform its obligations on its insurance contract and further maintained that the said sum of N226, 000,000.00 (Two hundred and twenty six million naira) was appropriated for payment of the insurance premium owed by the 1st appellant to the respondent by the Appropriation Act, 2000 and demanded the payment of the aforesaid total sum as mandated by the Appropriation Act, 2000 but to no avail.

By a writ of summons filed on 18th December 2000 at the Federal High Court, Abuja, the respondent herein claimed from the 1st 2nd and 3rd appellants herein as 4th, 2nd and 5th defendants respectively as well as the Attorney-General of the Federation, the Minister of Finance of the Federation and the Accountant-General as 1st 3rd and 6th defendants respectively.

The respondent filed its statement of claim. The 1st appellant filed a statement of defence admitting virtually all the matters of facts pleaded by the respondent. The respondent consequently brought an application pursuant to order 31 rule 4 of the Federal High Court Rules, 2000 for judgment on the amount claimed following the admission made by the 1st appellant.

The trial judge granted the plaintiffs motion as prayed in consequence of the admissions contained in the 1st appellant's statement of defence and 1st appellant's counsel failure to object to the motion.

The management of the 1st appellant became aware that judgment had been ob-tained against the 1st appellant when the respondent attempted to attach the funds of the 1st appellant in the hands of CBN. The 1st appellant consequently on 6/7/01 sought for and obtained leave of this court for extension of time within which to seek leave to appeal, leave to appeal, and extension of time within which to appeal against the judgment of the lower court given on 14th February, 2001. The 2nd and 3rd appellants also sought and obtained the leave of the court to appeal against the decision of the lower court.

Both appeals filed by the 1st appellant and the 2nd and 3rd appellants were subsequently consolidated and heard pursuant to an order of the court of appeal departing from the rules of the court to hear the appeal on the bundle of documents filed.