The appellant who was the defendant in the court below is a banker to the respondent's company. The respondent maintained a current account with the appellant Bank. On the 5th day of July, 1985, pursuant to an application by the Inspector-General of Police under the joint purports of Section 7 Bankers Book Act, 1879 and Section 96, Evidence Act, a Magistrate, A.P. Appah Esq., made an order on the Manager I.B.W.A., Aba Road Branch, Port Harcourt, to furnish the Commissioner of Police, State CID Port Harcourt, with a statement of accounts of Kennedy Transport Limited, opened by Chief (Dr.) E.S. Amadi of 3 Ozuzu Close, D/Line Port Harcourt and stop immediate withdrawals from such account.

On or about the 2nd day of September, 1985 when the order of the Magistrate was still subsisting not having been quashed, discharged or set aside, the respondent by the hand of its Managing Director, Chief (Dr.) E.S. Amadi aforementioned, even though aware of the said order, issued a cheque NO. PH/1724729 for the sum of N1,500.00 (One thousand, five hundred Naira) to be drawn on the said account and made payable to "cash". The appellant returned the cheque with the inscription "Drawers attention required, Police Injunction on account".

Sequel to the above, the respondent then sued the appellant claiming as follows:-

An application made at the instance of the appellant to join the Commissioner of Police, Rivers State as 2nd defendant at the onset of the proceedings was not only vehemently opposed by the respondent but the court below ruled joinder as unnecessary. Subsequently, appellant, with leave, amended its statement of defence.

Evidence was adduced on both sides and after addresses by counsel, the trial court in a reserved judgment found for the respondent, awarding in its favour the injunction claimed as well as N25,000.00 general damages and nominal damages of N200 for libel with costs of N350.00.

Aggrieved by the decision, the appellant appealed to the Court of Appeal.