As far back as the year 1980, the 3rd Appellant had an account with the Respondent bank. The account number is 400127. Initially the 3rd Appellant was granted an overdraft facility for the sum of N80,000.00. By the year 1982, the outstanding amount of the overdraft stood at N487,375.50. At the instance of the Appellant the Respondent Bank converted the overdraft amount into a loan account and the account number was variously referred to as 400127/62586,44014/62586/400127 pursuant to the conversion, the Appellants mortgaged to the Respondent Bank properties covered by Certificates BO/1621 and NE/1367 belonging respectively to the 2nd and 1st Appellants. A Deed of Legal Mortgage dated 13/10/1982 registered as No.347 at page 347 vol.7 (misc) of Land Registry in the office at Maiduguri (Exh.C) was executed by the parties with the 1st and 2nd Appellants as mortgagers and sureties, 3rd Appellant as the borrower and Respondent as the Mortgagee. It is the Appellant's case that in November, 1982 when the Respondent drew their attention to the outstanding amount, the 1st Appellant and the Respondent agreed that the amount should attract interest at the rate of 13% but rather than adhere to this agreement, the Respondent inflated the interest rate. The Appellants further claimed that they had paid to the Respondent Bank the sum of N1,189,963.26k; that the 1st Appellant again paid under duress the sum of N300,000.00 and finally that the Nigeria Bank of Commerce and Industry (NBCI) paid on their behalf the sum of N82,257.74 on 19/7/84. By reason of these payments, the Appellants contend that they have fully liquidated their indebtedness to the Respondent Bank. They relied on the 3rd Appellant's account which was admitted in Evidence as Exhibit "B."

On its part, the Respondent denied reaching agreement with the 1st Appellant on the interest rate maintaining that the interest rates are charged in accordance with the Central Bank guidelines. The Respondent admitted that the 1st Appellant paid the sum of N300.000.00. But denied it was paid under compulsion. It is the Respondent's case that the Appellants are still indebted to it to the tune of N1,858,622.15 as at 28th July, 1993. Regarding the sum of N82,297.74 paid by the NBCI, the Respondent explained that the NBIC paid the amount for the release of another C of O No. NE/154 held by the Respondent as security for another overdraft of N40,000,00 it granted to the 3rd Appellant which had risen to N82,297.14. The NBCI took that step so as to use the C of O No. NE/154 as security for its own loan to the 3rd Appellant. By a letter dated 19/3/1984 Exhibit J4, the Respondent Bank reminded the 3rd Appellant of its default in the repayment of the loan and in response the 1st Appellant by letter dated 29/3/1984 Exhibit J pleaded for time to repay the loan. As the Appellants were unable to liquidate the loan, the Respondent in accordance with terms of the legal mortgage served them notice of its intention to exercise its power of sale.

It should also be mentioned that the 2nd Appellant was said to be a minor and could not legally be a party to the Deed of the Legal Mortgage. That Deed of Legal Mortgage, as far as his property was concerned, was null and void and of no effect, since as a minor, he could not transfer his property by means of a legal mortgage.

After the hearing of evidence the learned trial Judge dismissed in their entirety the Plaintiffs’ claims and entered judgment in favour of the Defendant in its Counter-claim. The Plaintiffs appealed to the Court of Appeal and that was dismissed. Still dissatisfied the Appellant appealed to the Supreme Court.