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BANK OF AFRICA v. AKUAFO ADAMFO MARKETING CO. LTD & ANOTHER

2018

HIGH COURT

GHANA

CORAM

  • DOREEN G. BOAKYE-AGYEI (MRS.) J

Areas of Law

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

AI Generated Summary

A Ghanaian bank sued its Ghana-based borrower and the borrower’s Swiss parent-guarantor for repayment of an overdraft facility, contractual interest, and costs. The facility was enhanced to GHC 15 million in April 2015, backed by a corporate guarantee and assignment of receivables from Ghana Cocoa Board, with a 12-month tenure at 27.76% interest and a 6% penal rate. After expiry and going into excess, the applicable rate became 33.15%. The bank produced account statements showing debt of GHC 15,838,642.73 as of 19 November 2015 and GHC 19,079,543.36 as of 26 November 2016. Defendants claimed an oral promise to forbear enforcement pending an operational restructuring and later alleged full repayment after an internal reconciliation, but offered no documentary proof. Applying the Evidence Act’s burdens, cross-examination admissions, parol evidence rule, and a whole-agreement clause, the court found the bank’s evidence credible and unchallenged. It entered judgment for the bank for the principal, contractual pre-judgment interest, post-judgment interest under C.I. 52, and costs, holding the guarantor liable jointly and severally.

JUDGMENT