AGRICULTURAL DEVELOPMENT BANK vs D & K EVERFRESH FOODS GH. LTD & ORS
2025
HIGH COURT
CORAM
- HER LADYSHIP JUSTICE MAVIS AKUA ANDOH (MRS
Areas of Law
- Banking and Finance Law
- Civil Procedure
- Contract Law
- Property and Real Estate Law
2025
HIGH COURT
CORAM
AI Generated Summary
The Plaintiff sued the Defendants for the recovery of an outstanding balance on an overdraft facility. The court granted summary judgment against the 1st and 2nd Defendants but proceeded to trial against the 3rd Defendant to determine if his property was used as security for the debt. The court found that the Plaintiff did not provide sufficient evidence that the 3rd Defendant's property secured the overdraft facility, thus holding that the 3rd Defendant did not breach any mortgage agreement. The Plaintiff is to recover the debt from the 1st and 2nd Defendants.
On 19 th May 2021, the Plaintiff sued the Defendants jointly and severally for the recovery of the following reliefs;
1. An order for the payment of GHS953, 881.27 being the total outstanding balance of the credit overdraft facility as at 12 th April 2021, granted by the Plaintiff to the 1st Defendant, guaranteed by the 2nd Defendant and further secured by a Mortgage over two plots of land, noted as parcel Nos. 1041& 1042, Block 20 Section 114, La Bawaleshie, East Legon upon Land Certificate GA 7220 Vol. 53 Folio 176.
2. Interest on the said amount of GHS953.881.27 at the agreed rate of 30.47% from the 13 th of April 2021 up to the date of final payment.
3. Alternatively, an order for the judicial sale of two plots of land with buildings thereon noted as parcel Nos. 1041& 1042, Block 20 Section 114, La Bawaleshie, East Legon, upon Land Certificate GA 7220 Vol. 53 Folio 176 the property of the 3 rd Defendant.
4. Cost.
BRIEF FACTS
The Plaintiff is a Financial Institution licensed by the Bank of Ghana to engage in the business of banking and it offers a full range of banking products and services under the laws of Ghana. The 1 st Defendant is a Company engaged in the production of high quality food products locally and internationally. The 2 nd Defendant is the Managing Director of the 1 st Defendant and a Guarantor of the facility extended to 1 st Defendant by Plaintiff. The 3 rd Defendant used his property comprising two plots of land with a building thereon, situate at La Bawaleshie, East Legon as Mortgage to secure the repayment of a loan facility.
According to the Plaintiff, it initially granted a loan facility of GH¢100,000.00 to 1 st Defendant on 19 th November 2012 and this loan was secured by a Mortgage over the said two plots of land described as parcel Nos.1041 & 1042, Block 20 Section 114, La Bawaleshie East
Legon, upon Land Certificate GA 7220 Vol. 53 Folio 176 and stamped as LVD 21751/2012.
This initial loan was repaid, but the security was however retained for another facility, an overdraft facility of GH¢75,000.00, which is the subject matter of this action now.
In or around April 2013, the Plaintiff claims that, the 1 st Defendant applied for a temporary overdraft facility of SeventyFive Thousand Ghana Cedis (GH¢75,000.00) to enable them to pay customs duties. This overdraft facility was further secured by an unlimited shareholder guarantee executed by the 2 nd Defendant and stamped as LVDN/9058/12, and the said overdraft facili