Agricultural Processing Industry Limited and Pagade Holding Limited, which I refer to as the Pagades, bought a crumb rubber processing machinery from Ivory Merchant Bank Limited for the purpose of equipping their crumb rubber manufacturing plant in Delta State. The Pagades said that the machine was sold by Ivory to them upon material representations made by Ivory on the quality, merchantability and fitness. The Pagades said that the representations turned out to be false and they brought an action for breach of contract against Ivory at the High Court of Lagos State.

Ivory in its defence denied the existence of a contract. In the alternative, Ivory pleaded that the representations were innocently made based on the negligent or fraudulent misrepresentations made by Cotecna International Limited to Ivory. Ivory commenced Third Party Proceedings against Cotecna by the issuance of a Third Party Notice seeking contribution or indemnity from Cotecna in respect of the Pagades claim.

Cotecna filed a defence and also raised a preliminary objection on the jurisdiction of the High Court of Lagos State to hear the matter. Cotecna prayed the Court to strike out the Third Party Proceedings on the ground of lack of jurisdiction by the Court to hear the proceedings.

The High Court heard the preliminary objection and dismissed it. Dissatisfied Cotecna appealed to the Court of Appeal. That Court dismissed the appeal. Cotecna has appealed to this Court.