Facts:

The claimant is a financial institution and was a majority shareholder with 85% stake in Legacy Trust and Investment Limited, a finance company, before it was liquidated. The managing director of the defendant, Mr Abimbola Olanrewaju, was the managing director of the defunct Legacy Trust and Investment Limited whilst it was still a going concern. The board of Legacy Trust and Investment Limited discovered some shortfalls in the company’s revenue and consequently set up an audit to look into the company’s books. The audit uncovered a liability of N1,200,000,000.00 (One Billion, Two Hundred Million Naira) which was given out to customers as facilities without the knowledge and approval of the board. As a result of the shortfall, depositors and creditors could not receive dividends on their investments. This situation led the claimant to advance a loan of N1,200,000,000.00 (One Billion, Two Hundred Million Naira) to Legacy Trust and Investment Limited.
The claimant alleged that Mr Abimbola Olanrewaju, being the managing director used his influence without the knowledge and approval of the board and granted a huge part of the amount to customers as facilities without securities. The claimant further alleged that it invited Mr Abimbola Olanrewaju to explain the disbursement of the funds and that the latter stated that the sum of N522,947,243.46 (Five Hundred and Twenty Two Million, Nine Hundred and Forty Seven Thousand, Two Hundred and Forty Three Hundred Forty Six Kobo) comprising both principal and interest was being owed the company by the defendant. A decision was then taken to liquidate the company and its assets and liabilities transferred to the claimant in order to repay the loan advanced to it. The claimant had a meeting with the defendant who agreed to repay the debt in instalments plus 16% interest. A memorandum was drawn up and executed by the parties.
The matter was later referred to the Police. The defendant offered its properties, thirty plots of land and also made a payment of N500,000.00 (Five Hundred Thousand Naira) to the claimant in order to liquidate the debt. After reconciling accounts, the balance came to a total sum of N115.200,000.00 (One Hundred and Fifteen Million Two Hundred Thousand Naira). The defendant failed to pay the balance after repeated demands and the claimant filed a suit against the defendant at the High Court of Lagos State claiming sum of N218,033,479.26 (Two Hundred and Eighteen Million, Thirty Three Thousand, Four Hundred and Seventy Nine Naira, Twenty Six Kobo) being the outstanding balance on the debt as at 1st October, 2013, interest of 16% on the accrued amount, damages and costs.
The defendant filed its defence and incorporated a counterclaim for the sum of N333,787,491.21 (Three Hundred and Thirty Three Million, Seven Hundred and Eighty Seven Thousand, Four Hundred and Ninety One Naira, Twenty One Kobo) alleged to be excess payment it made to the claimant in respect of the loan transaction. The defendant also counterclaimed 21% interest on the said amount, general damages and costs of N10,000,000.00 (Ten Million Naira) cumulatively.