Facts:

The respondent is a banking institution, as a petitioner in the trial court, it had filed a petition seeking an order winding up the appellant company on the ground that the appellant was unable to pay the sum of N48,498,672.47k (Forty-eight million, four hundred and ninety-eight thousand, six hundred and seventy two naira, forty-seven. kobo) owed the respondent.

The respondent contended that on 18th June, 1990 at the request of the appellant, it increased the overdraft facility being enjoyed by the company from the initial sum of N5,000,000.00 to N11,000,000.00. Furthermore that it (the bank) invested the sum of N10 million only for a period of 90 days without any roll-over option in the appellant’s commercial paper facility, and another N11,260,000.00 only for a period of 180 days without any roll over option.

Ultimately the sum of N48,498,672.47k (now made up of commercial paper investments and overdraft facilities) became outstanding in the appellant’s account with the respondent as at 31 July, 1995 which the appellant was unable to repay despite repeated demands. Among the letters of demand, the respondent relied on a letter of August 30, 1995 written by the respondent’s solicitors to the appellant.