ADAMU JAURO, J.C.A. (Delivering the Leading Judgment): The appeal herein is against the judgment of the Taraba State High Court of Justice, delivered on 7th July, 2011 in suit No. TRSJ/147M/2012.
The facts culminating in this appeal can be neatly compressed as follows: The 1st respondent applied for and was granted a term loan facility by the appellant vide a letter dated 6th November, 2007. The loan was for N35,000,000.00 to be disbursed to the members of the 1st respondent for the purpose of investing it in agricultural produce. The loan was guaranteed by a letter of irrevocable standing payment order given by the 2nd respondent for a monthly deduction of N2,482,209.44 from the subvention account of the 2nd respondent for 16 months to service the loan. By the same letter, the 2nd respondent guaranteed a continuous domiciliation of its subvention account with the appellant throughout the tenure of the loan. Repayment of the loan was however not effected within the stipulated time and…