Facts:

The 1st appellant, a Nigerian company, entered into a contract of carriage of goods by sea with the respondents to ship it goods to Nigeria. The 2nd appellant, an insurance company was contracted by the 1st appellant to insure the goods. It was stated in the Bill of Lading that in the event of a dispute between the parties, the Hague Rules and the Hague Visby Rules or the Merchant Shipping Act 2007 were to be the governing law. A dispute arose between the parties and consequently, the appellants filed a suit against the respondents at the Federal High Court, Lagos Division. The appellants alleged that the vessel provided by the respondents to carry the goods developed some mechanical problems which led to damage to the cargo on board the vessel resulting in the 2nd appellant paying a total sum of N48,831,724.80 (Forty-Eight Million, Eight Hundred and Thirty One Thousand Seven Hundred and Twenty Four Naira Eighty Kobo) as indemnity to the 1st appellant who sought to recover same from the respondents. The alleged damage occurred in June, 2007 while the suit was commenced in July, 2008. In February, 2009 counsel for the appellants filed an application to withdraw the 1st to 5th respondents from the suit. However, the appellants in 2010 sought to join the 1st to 5th respondents and consequently, the court ordered that they be joined. Having been joined in the suit, the 1st to 5th respondents filed a preliminary objection on the ground that the claims of the appellants were statute barred. The preliminary objection was predicated on the provision of the Hague Rules which states that any action between parties must be commenced within one year of the dispute and accrual of cause of action.

After hearing the parties on the preliminary objection, the trial court ruled in favour of the respondents and dismissed the suit of the appellants on the ground that it was statute barred since the alleged damage occurred in June, 2007 while the parties were joined in the suit in January, 2010. The appellants were dissatisfied with the ruling of the trial court and consequently filed a notice of appeal at the Court of Appeal, Lagos Division. The parties filed their briefs and the respondents incorporated a preliminary objection challenging the competence of one of the grounds of appeal. One of the issues for determination is whether the trial court was right in holding that the suit of the appellants was statute barred.