AGRICULTURAL DEVELOPMENT BANK VS AGYA ADU ENTERPRISE LIMITED & ANOR
2016
HIGH COURT
GHANA
CORAM
- HER LADYSHIP MRS. PATIENCE MILLS-TETTEH, J.
Areas of Law
- Banking and Finance Law
- Evidence Law
- Contract Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The plaintiff bank sued the defendants for the outstanding balance of a loan amounting to GH₵63,256.54. The court ruled in favor of the plaintiff, validating the loan's terms and dismissing the defendants' contention of unconscionable and harsh terms. The plaintiff demonstrated through evidence that the defendants had agreed to the interest rate subject to change without recourse to them. The judgment included the awarded interest and solicitors' fees.
By the Plaintiff’s writ of summons and statement of claim dated27/11/13 the plaintiff bank is claiming against the 1st and 2nddefendants a limited liability Company and its shareholder and Director respectively, jointly and severally the following reliefs; 1. An order directed at the defendants to pay to the plaintiffs the sum of sixty-three thousand and two hundred and fifty-six Ghana Cedis and fifty four pesewas, (GH¢63, 256. 54) being the balance outstanding as at September, 2013 on the credit facility granted the 1st defendant by the plaintiff.
2. Interest on sixty-three thousand and two hundred and fifty-six Ghana cedis and fifty four pesewas (GH¢63, 256. 54) from September 2013 till the date of final payment or in the alternative an order for the judicial sale of the mortgaged property described in the mortgage deed dated 24/11/2004 in satisfaction of the judgment debt.
THE CASE OF THE PLAINTIFF The plaintiff is a financial institution licensed under the laws of Ghana to do business of banking, with its head office located at ADB House, 37 Independent Avenue Accra and the 1st defendant is a limited liability company incorporated under the laws of Ghana, and a customer to the plaintiff bank.
2nd defendant is a shareholder and Director of 1st defendant.
It is the case of the plaintiff that during its banker-customer relationship with the 1st defendant, it extended credit facilities to the 1st defendant for its business, subsequently on or about 7/10/2004, the 1st defendant who deals in vehicle spare-parts, approached it for a credit facility in the sum of Ten thousand Ghana cedis (GH10, 000) to enable it augment its working capital; which facility the plaintiff bank granted and the terms thereof communicated by letter to the defendants and which terms were accepted by the defendants.
According to the plaintiff the credit facility was approved and granted to the defendants at a variable interest rate, which was at the time 32%per annum, subject to change without recourse to the defendants for a term of 12 months.
It is further the case of the plaintiff that the facility was to have been retired by equal monthly installments from date of initial disbursement and the interest accrued payable monthly in arrears.
The plaintiff maintained that the said credit facility was secured by a legal mortgage over a residential property, situate at McCarthy Hill Accra a personal guarantee of 2nd defendant.
It is the case of the plaintiff that the said facilit