The respondent awarded a contract to the appellant for the construction of the Interim Measures Building and utility Services Works at the Kaduna Airport. This was embodied in a contract agreement dated 3/11/80. By a letter dated 9/6/82, the Respondent unilaterally terminated the contract for alleged poor performance in the execution of the contract. By letter dated 16/6/82, the appellant replied that the termination was a breach of contract and as a result a dispute had arisen between the parties within the meaning of clause or section 19 of the contract agreement The said clause or section 19 provides for a preliminary procedure the settlement of disputes to precede an eventual submission to arbitration within the meaning of the Arbitration Law of Lagos State.

As a result of the failure by' the parties to agree on the appointment of an arbitrator that led to the appellant filing an originating summons at the High Court where it sought the following reliefs:

The application was opposed by the respondent which contended that the appellant did not satisfy the requirement or condition imposed on it by clause or section 19 of the Contract Agreement and that the appellant also failed to give the mandatory 7 days notice to the respondent before filing the application contrary to section (2) of the Arbitration Law of Lagos State.

The High Court dismissed the application agreeing that there was none-compliance with section 6(2) of the Arbitration Law. The appellant's appeal to the Court of Appeal was dismissed and it appealed further to the Supreme Court.