AGRICULTURAL DEV. BANK LIMITED v. WEBB BUILDERS LIMITED & ANOR

This High Court judgment concerns a local bank’s claim to recover an unpaid short-term facility from its corporate customer and the customer’s managing director, who executed a continuing and unlimited indemnity. The bank granted GH¢572,315 under a Facility Offer Letter dated September 17, 2013, with a 33.16% interest rate. The borrower had previously assigned receivables of GH¢973,377 from GETFUND to secure facilities. The defendants argued repayment was contingent on GETFUND payments, alleged inducement and misrepresentation regarding the indemnity, and claimed restructuring and interest freeze. The court found the 2nd defendant knowingly executed the facility and indemnity, was not an illiterate, and the documents contemplated future facilities. Clause 4.1 required repayment within six months of drawdown or upon receipt of assigned receivables, making repayment not contingent solely on GETFUND inflows. The bank satisfied the 30‑day demand notice requirement. Unchallenged account statements established indebtedness of GH¢1,549,309.65 as of November 10, 2016. The court entered judgment for the bank, ordered interest from November 10, 2016, and awarded costs of GH¢30,000.