BSIC GHANA LTD VS CAPTAINS HOTEL TRAVEL & TOURS LTD & ORS
2016
HIGH COURT
GHANA
CORAM
- JENNIFER DODOO (MRS)
Areas of Law
- Banking and Finance Law
- Contract Law
- Civil Procedure
- Evidence Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The case involved the Plaintiff seeking to recover sums owed from the Defendants based on credit facilities and loans provided. The court evaluated evidence regarding the disbursement of funds, application of agreed interest rates, and payments made by the Defendants. The court found the Defendants liable for a reduced sum of GH¢77,824.29 plus interest and penal rates, with costs awarded against the Defendants. Several legal principles regarding the burden of proof, interest rates on agreements, and the importance of pleadings in court proceedings were reaffirmed.
The Plaintiff’s claims against the Defendants were as follows:
a. The recovery of the sum of GH¢543, 499. 92 being the amount outstanding as at October 31st 2013 on the credit line facility advanced to the 1st Defendant.
b. The recovery of the sum of GH¢124, 718. 80 being the amount outstanding as at October 31st 2013 on the medium term loan facility advanced to the 1st Defendant.
c. Interest on the sum of GH¢543, 499. 92 at the agreed rate of 30. 25% from October 31st 2013 to the date of final payment d. Interest on the sum of GH¢124, 718. 80 at the agreed rate of 31% from October 31st 2013 to the date of final payment.
e. The recovery of the sum of GH¢185, 991. 45 being the amount outstanding as at October 31st 2013 as penal charges on the two facilities.
f. Penal interest on the sums outstanding on the two facilities at the agreed rate of 12% to the date of final payment.
g. An order for the judicial sale of the parcel of land located at Ablekuma Accra that is stamped as LVD8607A/2011. h. An order for the sale of the stocks of 1st Defendant assigned to the Plaintiff.
i. Legal fees being 10% of the sum due the Plaintiff at the date of final payment.
j. Costs It was the Plaintiff’s case that it had advanced a credit line facility of GH¢250, 000. 00 and a medium term loan of GH¢100, 000. 00 to the 1st Defendant.
Whilst the credit line facility attracted interest at 30. 25% per annum, the medium term loan attracted interest at the rate of 31%per annum.
The Plaintiff averred further that both facilities each attracted a default charge of 2% and penal interest at the rate of 12% per annum on all outstanding balances on expiry.
According to the Plaintiff, both facilities were secured with: (a) A parcel of land situate at Ablekuma, Accra(b) Personal Guarantee of Solomon Kobia in the amount of GH¢400, 000. 00(c) Assignment of stocks and receivables.
The 2nd and 3rd Defendants in their defence denied being guarantor and mortgagor respectively for the facilities granted to the 1st Defendant.
Whilst admitting that the Plaintiff had extended credit facilities to the 1st Defendant, they denied that the 1st Defendant’s indebtedness was for the amounts endorsed on the writ of summons.
The issues settled for trial were: 1. Whether or not the Defendants are liable for the amount claimed? 2. Whether or not Plaintiff applied the agreed interest rate at premium in the agreement? 3. Whether or not the Plaintiff disbursed the facilities approved to the Defendant