The respondents filed an action against the appellant at the High Court claiming a total sum of N3,500,000.000 in connection with a fund administration scheme. Both parties exchanged pleadings after appellant, as 2nd defendant, had entered an unqualified or unconditional appearance.

In its statement of defence. The appellant averred that the respondent's action was premature as the respondents were yet to utilize and or exhaust the arbitration provision in the trust deed in the case. The said arbitration clause contained in paragraph 19 of the trust deed read:

By a motion on notice, the respondents prayed the trial court to enter judgment in their favour on an admission of sums of N1,411.019.43 as set out in the appellant's pleading. The trial court entered judgment in favour of the respondents against the appellant only in respect of the sum duly admitted by the appellant.