BANK OF AFRICA GHANA LIMITED vs LOUIS ASOMANING-BIMPONG
2018
HIGH COURT
GHANA
CORAM
- HER LADYSHIP, JUSTICE JENNIFER A. DADZIE
Areas of Law
- Civil Procedure
- Banking and Finance Law
- Contract Law
- Evidence Law
2018
HIGH COURT
GHANA
CORAM
AI Generated Summary
Justice Jennifer Abena Dadzie of the High Court (Commercial Division) in Ghana granted a judgment on admissions in a debt recovery claim between a commercial lending bank and its borrower. The bank sued after the borrower failed to repay a facility originally advanced in June 2012 and subsequently restructured by a facility letter in April 2013 specifying a base interest rate of 25.95% per annum. Following court orders, the Deputy Director of Finance of the Judicial Service of Ghana audited the parties account, concluding as of 31 August 2016 that the borrower owed GH a545,811.38. Both sides accepted the audit in open court and neither cross-examined the auditor. The borrower paid GH a536,000 by November 2017, leaving GH a59,811.38 unpaid. Applying Order 23 of C.I. 47 and the Evidence Act (NRCD 323), the Court held that acceptance of the reconciliation was a clear, unequivocal admission warranting judgment for the outstanding balance, interest at 25.95% from 1 September 2016 until final payment, and costs of GH a5500.
On September 5, 2016, the Plaintiff caused a Writ of Summons accompanied by a Statement of Claim to be issued against the Defendant for the following reliefs: (a) An Order for then recovery of GH¢87, 204. 26 being the total indebtedness of the Defendant to the Plaintiff as at August 15th 2016.
b) Interest on the said sum at the actual interest rate of 24. 95 percent per annum from 16th August 2016, till date of final payment.
c) Penal interest on the said sum at the agreed penal rate of 6 percent per annum from 16th August 2016 till date of final payment.
d) Costs on a full indemnity basis.
According to the Plaintiff, as can be gathered from its pleadings, it was compelled to sue the Defendant because he failed to pay off a facility of Forty-six Thousand One Hundred Ghana Cedis which the Plaintiff advanced to it on 1st June 2012, which loan expired on 2nd July 2016. According to the Plaintiff, the Defendant had failed so to do in spite of several demands made on it such that as at 15th August, 2016, he was indebted to the Plaintiff in the sum endorsed on the Writ of Summons.
The Defendant caused appearance to be entered on his behalf by counsel who also filed a Statement of Defence on behalf of the Defendant on 27th October 2016, to which the Plaintiff replied.
It must be noted here that at the close of pleadings, the parties were referred to Pre-trial Settlement.
The Defendant, among other things, denied in his Statement of Defence the amount of his alleged indebtedness to the Plaintiff, claiming further that the debt and interest rate as agreed to between the parties were differently stated on the Statement of Claim.
The Defendant therefore requested for a copy of his statement of account from the Defendant and indicated in his defence an intention to apply to the court for the parties to go into accounts in the light of the interest rate used by the Plaintiff to calculate the outstanding balance of the debt and to also request for a reduction of interest rate.
On 17th November, 2016, the Plaintiff filed a Motion for Reconciliation of Accounts.
Per the Orders of the Court entered on 25th November 2017 and 23rd March 2017, the Court appointed the Deputy Director of Finance, Judicial Service of Ghana, as Auditor to reconcile the accounts as between the parties and to produce a Report that would inform the Court as to the appropriate figures arising therefrom and the pleadings thus far filed in the suit and the cost of the reconciliation was to be