BARCLAYS BANK OF GHANA LTD. v. LARTEY AND OTHERS

Barclays Bank of Ghana Limited sought a judicial sale of mortgaged property on the Nsawam-Avenor road after the death of its customer, Emmanuel Kotoku Lartey, who operated the business name Scientific Commercial Art Services (Scarts). The bank had advanced loans and overdrafts to Lartey under the Scarts business name, secured by an endowment policy and a legal mortgage. After Lartey’s death, Bank of Ghana engaged with his administrators, who formed Scarts Limited to assume Scarts’ assets and liabilities. The administrators opposed the originating summons, arguing Scarts was a distinct entity and they were not personally liable. Edward Wiredu J. held that registration under the Registration of Business Names Act, 1962 (Act 151) does not create a separate legal personality or perpetual succession; therefore, Scarts was not distinct from Lartey. Interpreting the mortgage deed, the court found the mortgagor was “Emmanuel Kotoku Lartey of Scarts,” with “of Scarts” merely descriptive. The court ruled the administrators were proper parties to be sued and overruled the preliminary objection.