AGRICULTURAL DEVELOPMENT BANK LIMITED vs AFRICAN MODERN BUILDERS LIMITED & ORS

By a Writ of Summons and Statement of Claim filed on the 13th of July 2018 in the Registry of this Court, Plaintiff claims jointly and severally against the Defendants the following reliefs:

i. An order for the recovery of the sum of Gh¢ 2,352,253.04 being the principal sum and interest due on the loan facility granted to the 1st Defendant by the Plaintiff.

ii. Interest on the said sum from 07/05/2018 till date of final payment.

Or in the alternative

iii. An order for the judicial sale of Tipper Truck with Registration Number: GS 5902-12 belonging to the 2nd Defendant.

iv. Costs.

Case of Plaintiff

Plaintiff is company that carries on the business of banking. The 1st Defendant is a company that carries on the business of road and building construction, and a customer of the Plaintiff. The 2nd Defendant is the Managing Director of the 1st Defendant and provided security for the loan transactions which is the subject matter of this suit. The 3rd Defendant is a corporate body established by the Ghana Highway Authority and has the oversight responsibility for the administration, control, development and maintenance of the trunk and road network in Ghana.

The Plaintiff says that in the month of May 2014, it granted the 1st Defendant a loan facility to the tune of Gh¢ 705,291.00 hereinafter referred to as Short Term Loan I. The Plaintiff says that the purpose of the said loan was to enable the 1st Defendant to execute a contract awarded to the 1st Defendant by the 3rd Defendant for the construction of the Akatsi town roads. The Plaintiff further says that the tenure of the said loan facility was for a period of twelve (12) months. The said loan facility was to attract an interest rate of 9.25% per annum above the Plaintiff’s base rate, prevailing from time to time which at the time of contracting the said loan was 24.91% per annum and an interest rate of 40% per annum in the event of default in repayment by the 1st Defendant. The Plaintiff says that the said loan transaction was secured by an assignment in favour of the Plaintiff by the 1st Defendant with letter of an undertaking executed by the 3rd Defendant in favour of the Plaintiff to assign receivables to the tune of Gh¢ 4,365,178.03 under the contract awarded to the 1st Defendant; Registration of a Tipper truck with Registration Number GS 5902-12 belonging to the 2nd Defendant in the joint names of the 1st Defendant and the Plaintiff and the execution of an unlimited personal guarantee in favour of