AMUGA RURAL BANK VS OCEABA FARMS LIMITED
2024
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE DOREEN G. BOAKYE AGYEI (MRS.)
Areas of Law
- Banking and Finance Law
- Contract Law
- Evidence Law
2024
HIGH COURT
GHANA
CORAM
AI Generated Summary
Plaintiff Bank sued Defendant for recovery of GHC 814,074.17 and related reliefs. Defendant denied part of the claims, arguing that the debt and interest rate differed from what was claimed. The court analyzed evidence and applicable law, particularly the burden of proof under the Evidence Act, 1975 (NRCD 323). The Court found that the Defendant owed Plaintiff GHC 316,145.31 as of December 30, 2013, with a 3.5% simple interest rate but did not owe GHC814,074.17 as claimed. The Plaintiff was awarded costs but not general damages.
The Plaintiff is a financial institution registered under the laws of Ghana to carry on the business of Banking and other related businesses.
The Defendant is a company and a client of Plaintiff.
On the 20 th June, 2016 the Plaintiff herein instituted the instant action against the Defendant seeking the following reliefs as endorsed on the Writ of Summons and Statement of Claim.
1. Recovery of the sum of GHC 814, 074. 17 being Defendant's total indebtedness to the Plaintiff Bank as at April, 2016 2. General Damages for breach of Contract.
3. Cost of the Suit Upon service of the Writ of Summons together with the Statement of Claim on the Defendant, the Defendant filed a Notice of Appearance and followed by filing a Statement of Defence on the 8 th of July, 2016 and in the Statement of Defence, the Defendant partially denied the claims of the Plaintiff.
At the close of pleadings the Court on the 15 th of October, 2019 set down the following issues for the determination of the Court: a. Whether or not the total sum of money received by the Defendant in the form of overdraft plus interest amounted to GHC316, 145. 31 as at 30th December, 2013. b. Whether or not it was agreed that the Defendant will pay 3. 5% as interest on the said amount per month.
c. Whether the Defendant's total indebtedness to the Plaintiff stands at GHC 814, 074. 17 at the end of April, 2017. d. Whether or not Plaintiff is entitled to its claims e. Any other issue or issues arising from the Pleadings.
THE PLAINTIFF'S CASE.
The Plaintiff's case is that the Defendant is a customer of the Plaintiff Bank and from th July, 2012 the Defendant received various sums of monies from the Plaintiff in the form of Overdraft facilities.
According to the Plaintiff, it was agreed between the Plaintiff and the Defendant that the facilities granted the Defendant will attract a monthly interest of 3. 5%. That the total sum of monies received by the Defendant th from the Plaintiff in the form of Overdraft facilities plus the accrued interest as at 30 December, 2013 amounted to GHC316, 145. 31. The case of the Plaintiff is also that the Defendant was to pay the money back to the Plaintiff on the 30 th December, 2013 but has refused or failed to do so thus making the Plaintiff to suffer serious financial consequences and as at the end of April, 2016, the total indebtedness of the Defendant to the Plaintiff stands at GHC 814, 074. 17 since the debt continues to attract interest. The Plaintiff states t