Facts:

The claimant entered into a contract with the defendant for the supply of chemicals
and certain raw materials. The claimant alleged that after receiving the goods the
defendant failed to make payments for them and consequently, it filed a suit against
the defendant at the High Court of Lagos State claiming the sum of US$9,222,008
(Nine Million, Two Hundred and Twenty Two Thousand, and Eight US Dollars) or
its Naira equivalent and interest on the said sum. The claimant further alleged that
the defendant failed to fund letters of credit opened in its favour after receiving the
goods. The defendant denied liability in its pleadings stating that it was not indebted
to the claimant in any way. The defendant filed an application to join some banks
who were privy to the transaction between the parties. At the case management
conference between the parties, it was discovered that some sums of money
were actually paid to the claimant by the banks. A reconciliation of account was
done and consequently the claimant amended its process to reflect the outstanding
indebtedness of $4,408,597.00 (Four Million, Four Hundred and Eight Thousand,
Five Hundred and Ninety Seven United States Dollars). The settlement was entered
as the judgment of the court after striking out the banks from the suit; the claimant
proceeded against the sole defendant.
The defendant incorporated a counter claim in its defence, pleading that the claimant
was indebted to it in the sum of US$1,705,120.50 (One Million, Seven Hundred
and Five Thousand, One Hundred and Twenty US Dollars, Fifty Cents). The counter
claim was based on a purported agreement between the parties that the profit
margin on the supplied goods was to be 10% and that the claimant unilaterally
increased it to between 40% to 50%, a move which raised the defendant’s alleged
indebtedness to the sum claimed by the claimant. The defendant also alleged
that the claimant does not have locus to institute the action on the ground that it
was not a company incorporated according to law.
One of the issues for determination is whether the claimant is not entitled to be
paid for the goods it supplied to the defendant.