Facts:

The appellants were customers of the defunct Trade Bank Plc. The respondent is the liquidator of Trade Bank Plc. The 1st appellant was granted several facilities by Trade Bank Plc before it was wound up. In 1996, the 2nd appellant gave a personal continuing guarantee for some facilities granted to the 1st appellant by Trade Bank Plc. In 1998, Trade Bank Plc granted further facilities to the 1st appellant which were guaranteed by the 2nd appellant. The appellants defaulted in repayment of the facilities and Trade Bank Plc, before being wound up, wrote several demand letters to the appellants. The appellants replied one of the letters in which they admitted their indebtedness but made an appeal to pay the sum of N30,000,000.00 (Thirty Million Naira) in full and final settlement of their indebtedness. The appellants failed to repay the facility before the respondent took over the affairs of Trade Bank Plc as liquidator.
Following the assumption of its position as liquidator of Trade Bank Plc, the respondent sent a demand letter to the appellants requesting the payment of the facilities and accrued interests. The appellants disputed the figures and filed a suit against the respondent at the High Court of Lagos State. The appellants claimed that they were not indebted to the respondent on the ground that Trade Bank Plc made illegal deductions from their account and that their initial admission was based on an error made by them without recourse to expert advice and opinion. The respondent filed its defence and incorporated a counterclaim. The matter went to trial and at the end of proceeding, the trial court dismissed the claims of the appellants and granted the counterclaim of the respondent in part. The court granted the sum of N30,000,000.00 (Thirty Million Naira) in favour of the respondent being the amount of the facility admitted by the appellants in their response to the demand letter of Trade Bank Plc. The court held that the respondent failed to prove the amount claimed in its counterclaim. Furthermore, the court granted 15.5% pre-judgment interest and 10% post-judgment interest in favour of the respondent.
The appellant was dissatisfied with the judgment of the trial court and filed a notice of appeal at the Court of Appeal, Lagos Division urging the court to reverse the trial court. One of the issues for determination is whether the trial court was right in entering judgment against the appellants relying on their admission of indebtedness.