Facts:

The 1st claimant is a company engaged in the business of manufacturing. The 2nd claimant is a director of the 1st claimant. The defendant is a banking institution. The claimants are customers of the defendant. By an offer letter in February 2003, the defendant advanced a facility of N6,073,247.57 (Six Million, Seventy Three Thousand, Two Hundred and Forty Seven Hundred, Fifty Seven Kobo) to the 1st claimant. The facility was personally guaranteed by the 2nd claimant. Within the same period, another facility of N5,672,913.75 (Five Million Six Hundred and Seventy Two Thousand, Nine Hundred and Thirteen Hundred and Seventy Five Kobo) was also advanced to the 1st claimant and a continuing personal guarantee was executed by the 2nd claimant. One of the terms was that the claimants will domicile their funds with the defendant. The claimants failed to fulfil their bargain and in 2004, the facilities were rolled over and secured by a pledge of the 2nd claimant’s property located in Lagos. The documents in respect of the mortgage were however, not executed by the claimants. The claimants defaulted in repaying the facilities and the defendant made deductions from the claimants’ accounts and attempted to enforce the purported mortgage between the parties.
In 2005, the claimants filed a suit against the defendant at the High Court of Lagos State seeking several reliefs. One of them was a declaration that charges on their accounts with the defendant were arbitrary, unilateral, contrary to the agreement between the parties and that they should be reversed. The claimants also sought an order for reconciliation of the 1st claimant’s account and a perpetual order restraining the defendant from interfering or disturbing the 2nd claimant’s use and occupation of the property, the subject matter of the purported mortgage. After being served with the process, the defendant filed its defence and incorporated a counterclaim. The defendant counterclaimed the sum of N5,846,968.05 (Five Million Eight Hundred and Forty Six Thousand, Nine Hundred and Sixty Eight Naira, Five Kobo) being the outstanding debt and accrued interest plus 25% interest rate from May, 2005 and an order enabling the defendant to execute and perfect the purported mortgage between the parties.
In the course of proceedings, the claimants admitted to being indebted to the defendant in the sum of N2,613,429.15 (Two Million, Six Hundred and Thirteen Thousand, Four Hundred and Twenty Nine Naira, and Fifteen Kobo) and consequently, the defendant filed an application for judgment on admission which was granted by the court. The claimants failed to diligently prosecute their claims and after failing repeatedly to show up in court, the defendant applied that the claims be struck out and its counterclaim heard. The application was granted and the defendant proceeded with its counterclaim. One of the issues for determination is whether there was a binding facility agreement between the parties, whether same has been repaid and the proper order to be made by the court in the circumstances of the matter.