ABii NATIONAL SAVINGS & LOANS LTD VS ZAP ENERGY GHANA LIMITED & ORS
2016
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP SAMUEL K. A. ASIEDU, J.
Areas of Law
- Civil Procedure
- Contract Law
- Evidence Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The plaintiff applied for a final judgment in default of appearance against the defendants for failing to repay a credit facility. The defendants did not appear in court, leading the plaintiff to pursue the application under Order 10 rule 1 of the High Court (Civil Procedure) Rules, 2004, CI 47. The court found that the application was incorrectly filed under this rule as the debt was secured by a charge, requiring the plaintiff to seek leave of the court with notice to the defendants. The failure to notify the defendants infringed natural justice, and the court dismissed the application.
The instant application seeks an order of the court to enter final judgment in default of appearance for the reliefs indorsed on the writ of summons against the defendants in favour of the plaintiff.
The application is brought ex parte.
By its writ of summons the plaintiff claims against the defendants: a. An Order for the payment of the sum of GH¢358, 160. 09 being balance due and owing as at 2nd May, 2016 on account of credit facility granted to 1st Defendant Company by Plaintiff on 4th September 2014, the repayment of which was secured by assignment to Plaintiff of 1st Defendant’s receivables of GH¢1, 011, 600 from Nestle Ghana limited and joint several guarantees executed by 2nd and 3rd Defendants but payment of which Defendants have failed to make good, several demand notices notwithstanding.
b. Interest of 6% per month on the sum of GH¢358, 160. 09 and all unsatisfied payments respectively calculated at the end of each day and payable at the close of each month from 2nd May, 2016 up to and until the date of final payment.
c. Costs including legal fees.
According to the plaintiff, despite the fact that the defendants have been served with the writ and statement of claim issued by the plaintiff, the defendants have failed to enter appearance as required by the Rules of court; hence, the present application.
The application is brought under Order 10 rule 1 of the High Court(Civil Procedure) Rules, 2004, CI 47 which provides that 1. Claim for liquidated demand(1) Where the plaintiff’s claim against a defendant is for a liquidated demand only, and the defendant fails to file appearance, the plaintiff may, after the time limited for appearance, apply to enter final judgment against the defendant for a sum not exceeding that claimed by the writ and for costs, and proceed with the action against other defendants, if any.
The plaintiff has averred at paragraphs 10 and 11 of its statement of claim that: 10. Plaintiff says that 1st Defendant assigned to it all receivables amounting to GH¢1, 011, 600 from Nestle Ghana Limited, and independent guarantee from