Facts:

The appellant issued a Credit Guarantee in favour of the respondent guaranteeing the repayment of a facility of N25,000,000 granted to one A. R. Rasaq Motors Ltd by the Respondent. At the expiration of the “Credit Guarantee” bond issued by the appellant, and upon default of A. R. Rasaq Motors Ltd to repay the facility, the respondent demanded that the appellant repay the N25,000,000 facility whose repayment was guaranteed by it. However, the appellant failed to discharge its obligation under the Credit Guarantee to the respondent despite repeated demands.

Aggrieved, the respondent filed an action through Writ of Summons and also brought an application for Summary Judgment. In response, the appellant filed its Statement of Defence and Counter–Claim. The respondent’s application for Summary Judgment was heard and in a considered judgment the Court granted the respondent’s claim under the Summary Judgment procedure Rules.

Dissatisfied, the appellant appealed to the Court of Appeal.