The appellant instituted an action under the Undefended List Procedure against the respondent as receiver and liquidator of Allied Bank of Nigeria Plc for monies owed it by Allied Bank of Nigeria Plc. Judgment was entered in favour of the appellant following the dismissal of the respondent's preliminary objection challenging the jurisdiction of the Court to hear the matter. An appeal to the Court of Appeal, Calabar was allowed for breach of the respondent's right to fair hearing. The Court made an order for the matter to be heard de novo before a different Judge of the Federal High Court.

At the time the order for retrial was made, Akwa Ibom State had been created from Cross River State, resulting in the matter being transferred to the Uyo Division of the Federal High Court. Following the failure of the respondent to put in an appearance or file Notice of Intention to Defend, judgment was again entered against the respondent under the Undefended List. Following the judgment, the respondent brought an application for the judgment to be set aside on the ground that certain conditions precedent to instituting the action had not been complied with, as the appellant had failed to comply with Section 493 of the Companies and Allied Matters Act 1990, that subjects all claims against a wound-up company to prior proof under the Bankruptcy Act Cap. 30 Laws of the Federation of Nigeria 1990; Section 32(3) (8)(b) and (c) of the Bankruptcy Act ; the Nigerian Deposit Insurance Corporation Act, 1990 that gives the Nigerian Deposit Insurance Corporation the power to prove claims made against a failed bank and Rules 70-101 of the Companies Winding Up Rules 1983, that stipulate the procedure for proving debts against a wound-up company. After hearing the application, the learned trial Judge set aside the judgment and transferred the matter to the general cause list. Dissatisfied with the decision the appellant appealed to the Court of Appeal, Calabar Division which dismissed the appeal. The appellant decided to further appeal to the Supreme Court.