Both parties entered into an agreement whereby the appellant instructed the respondent to arrange the transfer of large amounts of money in foreign exchange through the Central Bank of Nigeria to London on its behalf. Respondent was to be paid 5½ of the amount transferred as his professional fees.

Respondent made all necessary contacts and arrangements with the CBN and the Inland Revenue and succeeded in effecting the transfer in foreign exchange equivalent to the tune of N4, 651,794.68 in February 1982. Respondent then wrote and informed the appellant of the completion of the assignment and demanded payment of his professional fees. Appellant refused to pay and disputed liability to pay through a letter dated December 14th, 1984. Consequent upon this, Respondent filed a writ of summons on March 7th 1990 claiming the sum of $232,589 (or its Naira equivalent at the exchange rate operating on date of judgement) being 5% of the amount transferred and interest on the same at the rate of 15% per annum from February 1982 to date of judgment and subsequently at the rate of 5%P/A until judgment debt, interest and costs have been fully liquidated.

Appellant filed a statement of defence and a motion on notice praying the court to dismiss the action as it was statute - barred. Respondent filed a counter - affidavit to the motion. Trial Judge held that it was premature at the stage the application was brought for the court to decide whether the case was statute barred or not. Trial court thus dismissed the application. Appellant then appealed.