The Appellant herein was the Governor of Oyo State who was elected in the general election conducted on 19th April, 2003. He was sworn in as the Governor by taking his oath of allegiance and oath of office on 29th May, 2003. He was to serve in that office for a term of four years. However following a dispute between him and the House of Assembly of Oyo State, a faction of the members of the House purported to have impeached him in 2005, removing him from office and replacing him with his Deputy. The Appellant then challenged this impeachment in the High Court, the Court of Appeal and the Supreme Court where he was successful when the purported impeachment was declared unconstitutional, null and void, resulting in his reinstatement in the office which he was forced to vacate for 11 months. It was as the result of this judgment in his favour that the Appellant went before the Federal High Court Abuja and by his amended Originating Summons dated 29th March, 2007, urging the Court to determine-

The case of the plaintiff, as given by its Managing Director, Mr. Kayode Ola (P.W. 2) was that sometime in November, 1988, the 3rd and 4th Defendants approached him and requested to be allowed to buy cocoa in link from the plaintiff. This was agreed to on payment of the purchase price. Business then proceeded on “Cash and Carry “ basis until December, 1988 when the 3rd and 4th defendants made representation to the plaintiff that they were not in position to pay all the produce requested by them, because the Managing Director of Messrs. Phoenix Motors Ltd., from whom they will have collected money to pay for their purchases had traveled abroad. The 3rd and 4th Defendants were duly allowed to carry away cocoa on credit from thence upwards payment began to be made on irregular basis with the defendant falling into arrears. Then on 21st December, 1988, the 3rd and 4th Defendants succeeded in liquidating their indebtedness for all purchase made up to that date.

However, on the same 21st December, 1988, after setting their indebtedness, the 3rd and 4th Defendants started evacuating cocoa with the promise that they would pay for them later. The total quantity of cocoa, which they evacuated from plaintiff between that date and the 2nd of February,1989 was 77 tones, which at the agreed price of N18,000.00 per ton amounted to N13,950,000.00. Between 21st December, 1988 and 21st February 1989, the total payment made by the 3rd and 4th defendants to the plaintiff in part-payment of the debt was N11,475,000.00 leaving a balance of ₦2,475,000.00 still owing. However, on 9th December, 1988.the plaintiff had advanced the 3rd and 4th defendants the sum of N5, 000.00 and on 23rd January, 1989 the plaintiff also advanced them a further sum of N25,000.00. The total indebtedness of the 3rd and 4th defendant to the plaintiff as at 21st February 1989, therefore stood at N2,505,000.00. At the end January, 1989, the plaintiff demands immediate settlement of all outstanding indebtedness from the 3rd and 4th defendants. In response to this demand, the 3rd Defendant wrote a letter to the managing Director of the plaintiff, Mr. kayode Ola (p.W.2) on 1st February, 1989, promising that he would settle the bills in respect of the produce earlier supplied, but which they failed to do The said letter was later intended and admitted as Exhibit “LCL. 7” in this proceedings. Later, 3rd defendant still wanted more cocoa on credit, as a result of which the 3rd defendant issued -his personal cheque for N3,205,000.00 to plaintiff to hold on to it pending the clearance of a draft he had lodged with the 1st defendant. Then on 4th February.1989, the 3rd defendant brought a draft for N2,400.000.00 to the plaintiff made by the 1st defendant in favour of the plaintiff as the payee. And payable at the 1st defendant’s branch at lle-Ife on its immediate presentation, in part-payment of the total debt of N2,505,000.00 and immediately thereafter asked to be allowed to evacuate more cocoa on credit. P.W. 2. however insisted that further evacuation will not be allowed until the outstanding balance of N105.000.00 was paid in full. The said draft was later paid into plaintiff‘s account at 1st defendant’s Branch at lle-Ife on the 24th February 1990. Following plaintiff‘s refusal to allow further evacuation of cocoa, the 3rd Defendant threatened that he would stop the draft the which he had paid. It appears he actually did this, because on 27th February 1989, the plaintiff received a letter from the Union Bank, lle-Ife returning the said draft unpaid. The reason given for not paying the draft was that it was “irregularly drawn and that the endorsement was not clear.”

Later on 27th February, 1989, one D.S.P. Mrs. Igbinadolor came to Modakeke and arrested P.W. 2 and his father and took them to the Nigeria police headquarters, Ibadan, and detained them there. The said D.S.P. Igbinadolor also recovered from the plaintiff’s Counsel the draft of N2,400.000.00 issued by the 1st defendant in favour of the plaintiff. Upon investigation it was found that there was a complaint by one Maurice Zard of the 2nd defendant that the 3rd defendant collated money from him for supply of cocoa which he failed to supply to the 2nd defendant. It was also discovered that the 2nd defendant was using the 5th and 6th defendants to recover the draft from the 3rd and 4th defendants who wants to collect the value of the draft from 1st defendant and pass same to the 2nd defendant

In view of all the foregoing the plaintiff instituted this action jointly against the six defendants with various claims. The 3rd respondent also counter-claimed. The High Court dismissed the appellant’s claims and granted the 3rd respondent’s counter-claim against the appellant with cost. The appellant appealed to the Court of Appeal.