AGRICULTURAL DEVELOPMENT BANK LTD. VS ANTHONY ANNAN
2023
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP JUSTICE EMMANUEL A. LODOH, J.
Areas of Law
- Banking and Finance Law
- Contract Law
- Civil Procedure
- Evidence Law
- Property and Real Estate Law
2023
HIGH COURT
GHANA
CORAM
AI Generated Summary
Agricultural Development Bank (ADB) sued its customer, Anthony Annan, to recover unpaid debt from a 2012 term loan and a second GH50,000 credit ADB described as an inadvertent disbursement. Annan admitted taking the first GH50,000 loan, secured by a mortgage over Plot E20, Abura Village, Cape Coast, and admitted default (citing a flood), but disputed compound interest and denied executing a second loan agreement. The High Court treated the matter as a mortgage action, applying NRCD 54 section 13: the principal claim fell within the 12-year limit, while cheques issued by Annan in 2018 and 2019 constituted acknowledgments or part payments under sections 17 and 19, resetting accrual and preserving interest claims. The court ordered recovery of GH473,862.79 on the term loan with 36% default interest at simple interest from 1 October 2021, and recovery of GH50,000 from the 9 May 2012 credit with simple interest at the prevailing bank rate from January 2013, plus costs.
The jurisdiction of this court has been invoked by the Plaintiff bank to determine whether or not they are entitled to recover monies unpaid by the Defendant arising out of a loan facility contract and additionally monies allegedly inadvertently paid to the Defendant by the Plaintiff bank.
Thus per a Writ of Summons taken out of the Registry of the High Court, Commercial Court Division dated 17th December, 2021 the plaintiff seeks the following specific reliefs against the Defendant.
a. The recovery of the sum of Four Hundred and Seventy-Three Thousand, Eight Hundred and Sixty-Two Ghana Cedis, Seventy-Nine Pesewas (GH¢ 473, 862. 79) being outstanding balance on Term Loan of Fifty Thousand Ghana Cedis granted the Defendant on 26th March, 2012. b. Interest on GH¢ 473, 862. 79 at the contractual default compound interest rate of 36% from 1st October 2021 to date of final payment.
c. The recovery of Four Hundred and Fifty-Five Thousand, Five Hundred and Ninety-Eight Ghana Cedis, Eleven Pesewas (GH¢ 455, 598. 11) being outstanding balance on Fifty Thousand Ghana Cedis credited to the Defendant's account on 9th May, 2012. d. Interest on GH¢ 455, 598. 11 at the contractual default compound interest rate of 36% from 1st October, 2021 to date of final payment.
e. Legal Cost. Synopsis of Plaintiffs’ Case The Plaintiff’s case is succinctly outlined in their Statement of Claim filed on 17th December, 2021. The Plaintiff describes herself as a limited liability company engaged in banking activities.
The unchallenged pleading of the Plaintiff is also that the Defendant is a customer of the Plaintiff Bank.
The case of the Plaintiff is that it had disbursed an aggregate amount of One hundred thousand Ghana Cedis(GH¢100, 000. 00) in two separate transactions to the Defendant.
According to the Plaintiff Bank the first transaction was a term loan facility extended to the Defendant on 26th March, 2012 in the amount of Fifty thousand Ghana Cedis (GH¢50, 000. 00) at an interest rate of twenty-six per cent (26%) per annum calculated at a compound interest rate.
The Plaintiff further contended that it was agreed that the interest rate to be applied in the event that the Defendant defaults in the payment of the loan facility was thirty –six per cent (36%). The Plaintiff further states that a second disbursement of GH¢50, 000. 00 was inadvertently made out as another loan facility to the Defendant on 9th May, 2012. That the Defendant promised to refund the inadvertent disbu