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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

  • Banking and Finance Law
  • Contract Law
  • Evidence Law
  • Civil Procedure
  • Commercial Law

AI Generated Summary

The Ghana Court of Appeal, per Duose JA with Acquaye JA and Ayebi JA concurring, reviewed a banking dispute arising from an overdraft facility between a bank and Fraga Oil Ghana Ltd, guaranteed by two individuals. The bank sued for over GH¢2.26 billion (old cedis) and interest, mischaracterizing the overdraft as a loan, while Fraga Oil counterclaimed for unauthorized deductions, non-payment of five CEPS cheques, and interest refunds. The High Court dismissed the bank’s claim, found the guarantors not liable, and granted part of the counterclaim. On appeal, the Court of Appeal emphasized pacta sunt servanda and the burden of proof under the Evidence Act, criticized the bank’s unreliable records and implausible excuses, and agreed that cheques were paid from the company’s funds. Most grounds of appeal were dismissed. However, the court partially allowed an additional ground, invoking CI 19 to order an enquiry to calculate a proportionate interest refund to the bank tied to the five cheques; all other grounds failed.

JUDGMENT