BARCLAYS BANK(GHANA)LTD v SAKARI

Barclays Bank (Ghana) Ltd brought an action against its long-standing customer, Alhaji Sumani, to recover outstanding balances across three accounts, seeking ¢21,663,153.50 plus 30 percent interest from 10 August 1989. Sumani admitted obtaining funds to buy two Mercedes Benz articulated trucks and spare parts, but instead purchased a Saurer tanker, which the government seized in February 1982. He argued implied rescission and frustration and challenged penalty charges. The High Court (Julius Ansah J) rejected the bank’s claim, found that Sumani did not owe on two accounts, held the loan agreement frustrated as to the third, and concluded the bank owed ¢452,102.28 on the food supply account. A Court of Appeal majority largely affirmed with variations and directed further accounting on penalties. On further appeal, Acquah JSC held that the borrower’s core obligation in a loan is to repay; the seizure did not frustrate that obligation, and self-induced frustrations cannot be invoked. The Supreme Court allowed the appeal, set aside the lower judgments, affirmed the Court of Appeal minority, and ordered deductions for penalties and interest on penalties.