A. D. B. VS BAGWAYS LTD & ANR.
2016
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE DOREEN G. BOAKYE- AGYEI, J (MRS.)
Areas of Law
- Banking and Finance Law
- Civil Procedure
- Contract Law
- Evidence Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The plaintiff, a financial institution, sued the defendants for unpaid loan and overdraft facilities. Despite multiple notices, the defendants failed to appear in court. The plaintiff provided documentary evidence to support their claims. The court found in favor of the plaintiff, ruling that the defendants owed GH¢315,876.65 for the loan facility and GH¢39,694.14 for the overdraft facility, with interest accruing at 28.95% per annum. Costs of GH¢30,000.00 were also awarded to the plaintiff. Legal principles emphasized included the binding nature of contract terms, the obligation to repay loans irrespective of the loan's purpose outcome, and the burden of proof resting on the party asserting a fact.
Plaintiff prays the Honourable Court as per its Writ of Summons and Statement of Claim for the following reliefs: (a) An order for 1st and 2nd Defendants jointly and severally to pay to Plaintiff an amount of: i. Three Hundred and Fifteen Thousand Eight Hundred and Seventy Six Ghana Cedis Sixty-Five Pesewas (GH¢315, 876. 65) representing a Loan Facility (Principal + Interest) extended to 1st Defendant acting through 2nd Defendant and outstanding as debt owed to Plaintiff as at 2nd March, 2014. ii.
And Thirty-Nine Thousand Six Hundred and Ninety Four Ghana Cedis Fourteen Pesewas (GH¢39, 694. 14) representing a Temporary Overdraft Facility (Principal + Interest) extended to 1st Defendant acting through 2nd Defendant as at 28th February, 2014.
b) An Order for 1st and 2nd Defendants jointly and severally to pay Plaintiff interest on the amount of: i. Three Hundred and Fifteen Thousand Eight Hundred Seventy Six Ghana Cedis Sixty-Five Pesewas (GH¢315, 876. 65) representing a Loan Facility extended to 1st Defendant acting through 2nd Defendant and outstanding as debt owed to Plaintiff as at 2nd March, 2014 at the rate of 28. 95% as was agreed upon between the Parties with effect from the date that amount became due and inclusive of the date of final payment.
And Thirty-Nine Thousand Six Hundred and Ninety Four Ghana Cedis Fourteen Pesewas (GH¢39, 694. 14) representing a Temporary Overdraft Facility extended to 1st Defendant acting through 2nd Defendant and outstanding as debt owed to Plaintiff as at 28th February, 2014 at the rate of 28. 95% as was agreed upon between the Parties with effect from the date that amount became due and inclusive of the date of final payment.
Plaintiff filed the suit on 11/07/2014 and Defendants through 2nd Defendant entered appearance Pro Se on 21/10/2014 on his letterhead.
On 07/11/2014, Lawyers for the Defendants also entered appearance and filed a Statement of Defence on 10/11/2014. After a Pre-trial attempt failed, issues were settled by the Pre-trial Judge on 14/04/2015 and the matter was fixed for trial.
The issues to be tried were: 1. Whether or not the 1st Defendant took loan and overdraft facilities of GH¢230, 000. 00 and GH¢30, 000. 00 respectively from the Plaintiff in 2011. 2. Whether or not the facilities were to attract interest at 28. 95% per annum.
3. Whether or not the 2nd Defendant guaranteed the facilities for the 1st Defendant.
4. Whether or not as at 6th August, 2012 the 1st Defendant had paid GH¢121, 1