This appeal is against the judgment of the Court of Appeal.
The Respondent by a loan and mortgage agreement dated 26/8/1992 took a term loan of US$921,080.00, US$25,094.00 from the 1st Appellant to acquire additional plant, equipment and machinery for its biscuit factory project (Kan Biscuit Factory) situate at Aba in Abia State. In default, the 2nd Appellant was appointed as Receiver. Hence, the Respondent, as Plaintiff, filed an action against the Appellants as Defendants at the Federal High Court challenging the appointment of the 2nd Appellant by the 1st Appellant as Receiver in respect of the assets of the Respondent, an order directing the Appellants to reconcile its account with the Respondent and an order of injunction restraining the Appellants from taking over or disposing the Respondent’s assets.
Before the proper hearing, the Respondent vide a motion for interlocutory injunction sought to restrain the Appellants from selling KAN Biscuit Factory. The application was however refused by the trial Court. Dissatisfied, the Respondent filed an appeal at the Court of Appeal.
Nevertheless, while the substantive matter was pending before the trial Court and the interlocutory appeal before the Court of Appeal, the Appellants went ahead and sold the factory of the Respondent. Consequently, the Respondent vide a motion on notice before the Federal High Court where the substantive matter was pending, sought to set aside the sale being made pendente lite. The trial Court delivered its ruling setting aside the sale. Dissatisfied, the Appellants appealed to the Court of Appeal. However, the Court of Appeal dismissed the appeal and upheld the decision of the trial Court. Further dissatisfied, the Appellants appealed to the Supreme Court.