AGRICULTURAL DEVELOPMENT BANK vs ROYAL COMMODITIES & 2 ORS
2024
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP JUSTICE EMMANUEL A. LODOH, J.
Areas of Law
- Banking and Finance Law
- Civil Procedure
- Contract Law
- Evidence Law
2024
HIGH COURT
GHANA
CORAM
AI Generated Summary
The case concerns the Agricultural Development Bank PLC's attempt to recover money from Defendants due to an allegedly defaulted loan. The Plaintiff sought the repayment of GHS22,194,263.36, while the Defendants claimed the Plaintiff obstructed their efforts to sell property to settle the debt. The court found in favor of the Plaintiff, ordering the Defendants to pay GHS19,057,890 with interest and dismissed the Defendants' counter-claim. Key issues involved determining liability for the debt and responsibility for failed repayment efforts. The court highlighted principles regarding the burden of proof, the admissibility of unchallenged evidence, and the calculation of post-tenure interest.
Introduction This case essentially seeks a determination of whether or not the Plaintiff is entitled to recover from the Defendants monies alleged to be due the Plaintiff arising out of a loan facility agreement between the Plaintiff and the 1st Defendant.
The Judgment will further seek to determine whether the 2nd and 3rd Defendant are also equally liable for the payment of the said alleged outstanding as alleged guarantors of the 1st Defendant.
Finally, the judgment will seek to determine whether or not the Plaintiff is liable for the failure of the Defendants to repay the outstanding debts and if so whether the Plaintiff is further liable to pay for the debts of the Defendants arising of contracts between the Defendants and other creditors.
Thus per a Writ of Summons issued out of the Registry of the Commercial Court, Accra on 22nd August, 2022 the Plaintiff seeks the following reliefs as endorsed on their Writ of Summons against the Defendants: (a) Payment of the total sum of GHS 22, 194, 263. 36 being the debit balance outstanding on account of banking facility granted by the Plaintiff to the 1st Defendant, the repayment of which was jointly and severally guaranteed by the 2nd and 3rd Defendants.
b) Interest on the said outstanding amount at the contractual interest rate from 1st July, 2022, to date of final payment.
FURTHER OR IN THE ALTERNATIVE(c) An order for the judicial sale of a piece or parcel of land with warehouse situate, lying and being at Apowa in the Ahanta West Municipality in the Western Region, subject matter of the deed of mortgage dated June, 9th 2021.
d) Payment of legal costs on fully indemnity basis or on such other basis as may be assessed by the court(e) Further or other reliefs.
Upon service of the Writ of Summons the Defendants entered conditional appearance through their lawyers on 29th August, 2022. They subsequently filed a Statement of Defence and a Counter-Claim on 13th September, 2022. The Counter-claim of the Defendant is listed as follows: (a) A declaration that the Plaintiff is responsible for the inability of the 1st Defendant to sell its industrial plot at Tema in order to raise money to pay its indebtedness to the Plaintiff and the other financial institutions.
b) Payment of the under listed sums of money to the Defendants: i. Agricultural Development Bank PLC - GHS 4, 887, 887. 38 ii.
GCB PLC - GHS 2, 045, 824. 72 iii.
ACCESS BANK - GHS 575, 946. 74 iv.
Related parties - GHS 2, 245, 692. 97(c) Cost incl