The respondents had sued appellants and three others in respect of a banking transaction carried out by the parties.

First appellant, who were a government owned institution, brought a preliminary objection stating that by reason of Section 230(1) of the 1979 Constitution (as amended by Decree 107 of 1993) the Ondo State High Court did not have jurisdiction to hear the matter and that it was within the exclusive jurisdiction of the Federal High Court.

After arguments of counsel learned trial Judge dismissed it. The appellants were dissatisfied with the ruling of the trial court and appealed to the court of Appeal.