Citi Trust Investments Limited filed an action in the court below. She is the respondent in the appeal. She claimed the sum of N120,000.00 with interest at the rate of 5% being money payable by the second defendant/appellant under a credit guarantee bond issued by the latter to secure the repayment of the sum of N100,000.00 with interest.

The appellant was duly served the writ of summons. She is Veritas Insurance Co Ltd She entered appearance through her counsel in the chambers of Messrs. Akin Akintoye Company. That was on 15th July, 1987. Although the respondent served the appellant with the statement of claim, the appellant failed to file her statement of defence within time. On 10th November, 1987 the respondent applied for final judgment by summons under Order 10 Rules 1 and 2 of the High Court of Lagos (Civil Procedure) Rules, 1972. In other words, the respondent commenced Order 10 proceedings a shorter journey to obtaining judgment.

The summons for judgment was also duly served on the appellant. The appellant did not show up in court when the summons for judgment was argued on 7th December, 1987. Ruling was reserved for 29th December, 1987. Came 29th December, 1987, the learned trial Judge delivered his Ruling. He gave final judgment to the respondent in the sum of N120,000.00 with interest at the rate of 5% from 28th July, 1987 until the judgment is fully liquidated. Again the appellant was not in court. 29th December, 1987 fell on the court's vacation period.

Being dissatisfied with the ruling of the learned trial Judge, the appellant appealed against the said judgment.