CAL BANK LTD. v. INTERNET GHANA LTD. & ORS
2015
COURT OF APPEAL
GHANA
CORAM
- S.E. KANYOKE, J.A. (PRESIDING)
- K. A. ACQUAYE, J. A.
- S. DZAMEFE, J. A
Areas of Law
- Banking and Finance Law
- Civil Procedure
- Commercial Law
- Property and Real Estate Law
2015
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The case involves an appeal and cross-appeal regarding an unpaid loan and overdraft facilitated by the plaintiff to the defendants which was secured by mortgaged properties. The trial judge confirmed the debts but refused to order the judicial sale of certain properties due to procedural issues with mortgage documents. The appellate court addressed the procedural defects, clarified the legal position on unstamped instruments, directors' approvals, and the equivalence of company directors' notifications as sufficient demand notices. The appeal by the plaintiff was upheld, and the cross-appeal by the defendants was dismissed, confirming the entitlements of the plaintiff to the judicial sale of properties to recover the debts.
K. A. ACQUAYE, J. A.
This is a judgment in respect of an appeal filed by the plaintiff against the judgment delivered by the Commercial Division of the High Court in Accra as well as a cross-appeal by the defendant of the same judgment delivered on 29th August 2014.
The plaintiff/appellant issued a writ of summons claiming against the defendants/respondents cross-appellants jointly and severally that:-
a) The defendants pay to the plaintiff the amount of Gh¢492, 014.30 being as at 5th April 2011 the outstanding balance of the overdraft facility granted to the 1st defendant and guaranteed by the 2nd and 3rd defendants.
b) Interest on the above amount from 6th April 2011 to the date of final payment at the prevailing bank lending rate.
c) The defendants pay to the plaintiff the amount of US$1,045,774.61 being as at 5th April 2011 the outstanding balance of the medium term loan granted to the 1st defendant and guaranteed by the 2nd and 3rd defendant.
d) Interest on the above amount from the 6th of April 2011 to the date of final payment at the prevailing bank lending rate
OR IN THE ALTERNATIVE
e) Judicial sale of House No. 1, Hibiscus Street, Teshie Nungua Estates, Accra also known as parcel No. 67, Block 4, Section 74, Teshie, Nungua Estates.
f) Judicial sale of office building known as “Mama Abui Plaza” located at No. 2, Hall Avenue, Adabraka.
g) Judicial sale of property known as plot No 5, RP/20/M/21 and 22 Community 20, Tema.
h) Judicial sale of wireless broadband equipments
i) Other just and equitable reliefs
j) Costs occasioned by this action
It was the plaintiff’s case that in March 2006 she advanced to the 1st defendant a medium term loan of U$892,798.50 at an interest rate of 12% per annum. In August 2007 the plaintiff granted an overdraft facility of GH¢200,000 at an interest rate of 26% both of which facilities were utilized by the 1st defendant. These facilities were secured by a mortgage of the 2nd defendants’ property as evidenced by Exhibits D and E and the 3rd defendants’ property Exhibit F. According to the plaintiff the 1st defendant failed to redeem its indebtedness which stood at GH¢492,014.30 and US$1,045,774.61 and as at 5th April 2011 despite repeated demands hence the writ of summons.
In their defence the defendants admitted that the 1st defendant took various facilities from the plaintiff which were guaranteed by the 2nd and 3rd defendants. The defendants averred that the 1st defendant made some payments to the plainti