AGRICULTURAL DEVELOPMENT BANK VS PALM ACRES LIMITED & ORS
2016
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE AKUA SARPOMAA AMOAH (MRS.)
Areas of Law
- Banking and Finance Law
- Contract Law
- Civil Procedure
- Evidence Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The Plaintiff, a financial institution, filed a claim against the Defendants for the recovery of GHȼ150,896.53 and related interest, arguing that the Defendants defaulted on a loan issued in September 2010. The Defendants denied receiving the loan and counterclaimed for damages, alleging breach of trust. The court reviewed evidence, including loan approval documents and account statements, and heard testimonies from both parties. Ultimately, the 2nd Defendant admitted the debt but cited health issues as the reason for non-payment and requested a reprieve and interest waiver. The court ruled in favor of the Plaintiff, enforcing the repayment of the loan with interest and ordering the judicial sale of the 3rd Defendant's property if necessary. The court dismissed the interest waiver request due to lack of supporting evidence for the Defendant's health claims.
On the 9th day of May, 2012 the Plaintiff issued a writ against the Defendants herein praying for the following reliefs among others.
i) Recovery of an amount of One Hundred and Fifty Thousand, Eight Hundred and Ninety Six Ghana Cedis, Fifty Three Pesewas (GHȼ150, 896. 53) being the balance outstanding on the credit facility extended to the Defendants inclusive of interest as at 31st March, 2012
ii) Interest on the outstanding amount of One Hundred and Fifty Thousand, Eight Hundred and Ninety Six Ghana Cedis, Fifty Three Pesewas (GHȼ150, 895. 53) at the prevailing commercial rate from 1st April, 2012. Or in the alternative
iii) An order for the judicial sale of the property used to secure the facility.
The Plaintiff avers that it is a financial institution established under the laws of Ghana to engage in the business of banking whilst the 1st Defendant is described as a limited liability company and a customer of Plaintiff.
It is the case of the Plaintiff that in September, 2010, the 1st Defendant applied for and was granted a loan facility of One Hundred Thousand Ghana Cedis (GHȼ100, 000. 00) at an interest rate of 21. 95% per annum, subject to change without recourse to the Defendants.
This facility was to be repaid within a period of twelve (12)months with a three (3) month moratorium on both principal and interest. To secure the facility, the 2nd Defendant, a director of the 1st Defendant executed a contract of indemnity in favour of Plaintiff bank.
The 3rd Defendant for his part, secured the facility with a charge over his residential property situate at Adenta in Accra.
The facility according to Plaintiff has expired but the Defendants have failed to retire the loan in spite of persistent demands on them to do so.
It is this default on the part of defendants that has necessitated the institution of the present suit.
The Defendants by a Statement of Defence and Counterclaim filed on the 5th day of July, 2012 denied ever being granted any loan facility by Plaintiff.
They charge, that the Plaintiff having taken custody their title documents without granting them the facility was guilty of breach of trust. They therefore counterclaimed for the following: a) Damages for breach of trust. b) Perpetual injunction restraining the Plaintiff, his agents, assigns and workmen from demanding any loan facility from Defendant.
c) Costs.
Plaintiff in its amended reply and defence to the counterclaim essentially denied Defendants assertions and maintained