Judgment
PETER OYINKENIMIEMI AFFEN, J.C.A. (Delivering the Leading Judgment): The factual matrix undergirding this interlocutory appeal is straightforward, and by no means complex or convoluted. The Appellants are husband and wife, whilst the Respondent is a financial institution (formerly known as Agidingbi Community Bank). The Respondent granted a 90-day credit facility in the sum of N500,000.00 to the 1st Appellant to enable her “purchase 10 V50 Suzuki Motorcycles for sale” upon the terms and conditions contained in a letter of offer dated 4/8/97.
The facility was to be repaid from “proceeds from sales into your [i.e. 1st Appellant’s] account with the bank” with “a penalty charge of 10% compounded every month on every past due repayment”. The offer was accepted the same day, and the 2nd Appellant issued a personal guarantee dated 23/7/97 as well as deposited the title documents of his property situate at Railway Crossing, Agbado in Ifo Local Government Area of Ogun State with No. Tros/OG/04794 covered by Certificate of Occupancy No. 020319 as security for the facility.
The Respondent alleged that the 1st Appellant failed or neglected to fulfil her repayment obligations at all material times, save for a cheque of N50,000 paid into her debt service account on 19/7/99. The Respondent further alleged that the 2nd Respondent admitted in a letter dated 14/7/99 that the outstanding principal debt as at 27/5/98 stood at N283,141.08 whilst interest on the facility was compounding, but pleaded for a waiver of interest and promised to liquidate the entire debt in October 1999 which promise was not kept; and that several negotiation meetings aimed at reconciling accounts and make compromises (where necessary) were initiated by the Appellants between 2003 and 2004 to no avail; that the Respondent instructed its solicitors, Messrs Oluropo Awoyele & Co which gave a final demand notice dated 21/1/10; and that the principal loan and accrued interest as at 18/3/10 stood at N4,029,461,00.
The Respondent (qua claimant) subsequently initiated Suit No. ID/1281/2010 vide a writ of summons issued out of the Registry of the High Court of Lagos State on 8/9/2010 claiming against the Appellants (qua defendants), jointly and severally, the following reliefs: “a. An order of this Honourable Court foreclosing the defendants’ equity of redemption and equitable right to redeem the property mortgaged in favour of the claimant by deposit of title deeds of same in that respect. b.
