AMALGAMATED BANK v. FRAGA OIL GHANA LTD. and ORS
2012
COURT OF APPEAL
GHANA
CORAM
- I. D. DUOSE, J. A [PRESIDING]
- K. A. ACQUAYE, J. A
- E. K AYEBI, J.A
Areas of Law
- Civil Procedure
- Contract Law
- Evidence Law
2012
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The case revolves around a contested financial claim between a bank and its client concerning the repayment of an overdraft facility. The initial trial court dismissed the bank’s claims and partially upheld the client’s counterclaims, finding unauthorized deductions and other breaches by the bank. On appeal, the higher court upheld most of the trial court's decisions but allowed for a recalculation of interest on the unauthorized deductions. The judgment reinforces principles related to the burden of proof, adherence to written agreements, and the impact of unreliable evidence in legal proceedings.
DUOSE JA:-
This is an appeal against the judgment of the Automated Fast Track High Court, Accra dated 2nd day of July 2010.
The plaintiff/appellant hereinafter to be described as the appellant issued out a writ of summons against the defendants/respondents hereinafter to be described as the respondents.
In a) The refund of the sum of two billion two hundred and sixty seven million, nine hundred and thirty-six thousand four hundred and sixty one cedis, eighty three pesewas, ($2,267,936,461.83) being the balance due and owing to the plaintiff on a loan granted to the defendants which they have failed to pay.
b) Interest on the said sum at the prevailing commercial bank rate from May 2005 till date of final payment.
The respondent counter claimed against the appellant for the following:-
a) Payment of Gh¢208,901.69 being the value of the five cheques issued to CEPS and debited to 1st Defendant's account but the value of which were not paid to CEPS.
b) Payment of GH¢115,905.22 being the total value of the unauthorised debits made to the 1st defendant's account.
c) Refund of the sum of GH¢10,053.73 being the interest charged on the 1st defendant's debit balance for the month of July 2004.
d) Refund of the GH¢11,483.59 being the interest charged on the 1st defendant's debit balance for the month of august 2004.
e) Interest on the total of all the aforesaid sums at the prevailing bank rate from July 2004 in respect of reliefs (a) (c) and (d) and from 2006 in respect of relief (b) until the date of final payment.
The statements of claim and defence have been variously amended and many issues were set out for determination of the matter.
The original issues were:-
a) Whether or not the defendants owe the plaintiff the sum endorsed in
b) Whether or not the 2nd and 3rd defendants guaranteed the repayment of the debt in a memorandum to that effect signed by the 2nd and 3rd defendants.
c) Whether or not the plaintiff is in breach of the provisions of the guarantee.
d) Whether or not the defendants have funds in their accounts in excess of the sum claimed by the plaintiff and in consequence of which the latter rather is indebted to the defendants.
The following additional issues were filed
e) Whether or not accounts should be gone into as between the parties and a set-off made of any sums found due and owing to plaintiff from all sums held by plaintiff on behalf of 1st defendant.
f) Whether or not the plaintiff should be ordered to return all sums in