CAL BANK LIMITED VS BUREG LIMITED AND TWO OTHERS

The facts of the Plaintiff’s action are set out in the Writ of Summons and Statement of Claim filed on 11th July, 2014, as well as a Reply and Defence to Counterclaim filed on 20th November, 2014. According to the Plaintiff, it is a limited liability company, incorporated and licensed under the laws of Ghana to carry on the business of banking.

The 1st Defendant is a business entity registered under the Laws of Ghana and is a customer of the Plaintiff Bank. The 2nd and 3rd Defendants are the joint guarantors of the loan facility granted to the 1st Defendant.

The Plaintiff states that by an Offer Letter dated 17th November, 2011, it granted a short-term loan facility of Ghc 200,000 to the 1st Defendant at the interest rate of 27% per annum. The Plaintiff avers that the said short-term loan facility was to enable a subsidiary of the 1st Defendant Company, Multi Concept Limited, supply furnishing material, and that it expired on 31st May, 2012. It is also the Plaintiff’s case that the terms and conditions of the said facility were captured in the Facility Agreement executed between the Plaintiff and the 1st Defendant in November, 2011. The Plaintiff states that the 2nd Defendant’s Land Title Certificate was deposited as security for the loan facility in accordance with the terms and conditions of the Facility Agreement.

Further, it is Plaintiff’s case that by a Shareholders Guarantee dated 10th November, 2011, and a Corporate Guarantee dated 10th November, 2011, the 2nd and 3rd Defendants undertook to be jointly and severally liable to the Plaintiff in the event of default by the 1st Defendant for any banking facilities that may be advanced to the 1st Defendant.

The Plaintiff further avers that as further security to the loan facility, the 1st Defendant Company on 10th November, 2011, assigned all its interest, charges, and commissions of receivables from Multi-Concept to the Plaintiff. The Plaintiff states that the 2nd Defendant, who is the Managing Director of the 1st Defendant Company, also deposited his Land Title Certificate numbered GA 28939 and covering all that piece of Land being parcel No 20 Block 16 Section 169 at Ashongman in the Greater Accra Region to the Plaintiff as security for the facility granted to the 1st Defendant.

Again, it is the case of the Plaintiff that the Defendants have failed and/or neglected to pay the said amount owed and that all notices and reminders to the Defendants to pay off the said facility have proved futile. Thu