DAN ROD AMUDZI v. JOHN KWABLATSE AMLI
2004
COURT OF APPEAL
GHANA
CORAM
- R. C. Owusu, J.A Presiding.
- J.B. Akamba, Justice of Appeal.
- Anin-Yeboah, Justice of Appeal
Areas of Law
- Contract Law
- Banking and Finance Law
- Evidence Law
- Civil Procedure
2004
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
J.B. Akamba, J.A., writing for the Ghana Court of Appeal, affirmed a High Court judgment arising from a 1977 group loan obtained by the Atiavi Multi Purpose Co-operative Society from the Agricultural Development Bank (ADB) at 31% interest. The Society disbursed the thirty million cedis among its members; the defendant/appellant received thirteen million cedis but defaulted, leaving 13,622,489 cedis unpaid. The High Court entered judgment for 14,312,391 cedis and awarded 3.5 million cedis in damages. On appeal, the appellant primarily challenged the respondent-president’s capacity to sue and argued that the judgment was against the weight of evidence. The Court of Appeal held the Society had representative capacity to recover from defaulting members to protect its liability to ADB, relying on PW2’s testimony and authority recognizing representative actions and the effect of failing to cross-examine. Finding ample support for the trial court’s findings, the Court dismissed the appeal and awarded the respondent three million cedis in costs.
JUDGMENT
AKAMBA, J.A
This is an appeal against the judgment of E.M Boateng J. delivered on 12th January 2001 at the Denu High Court.
The facts occasioning this appeal as gleaned from the record are that the plaintiff/respondent (hereinafter simply referred to as the respondent) who is the president of the Atiavi Multi Purpose Co-operative Society (herein after referred to as the Society) applied on behalf of the Society in 1977 for a group loan of thirty million cedis from the Agricultural Development Bank, Denu (hereinafter simply referred to as the Bank). The loan was for the members of the Society to cultivate sugar cane and distil akpeteshie. The Bank granted the loan at an interest rate of 31% per annum. The recipient Society disbursed the thirty million (30 million) cedis among its members, which included the defendant/appellant herein (hereinafter referred as the appellant). The appellant obtained the largest share of thirteen million cedis out of the thirty million cedis based upon the Society's own criterion on the number of shares held in the Society and amount secured in the Bank. It was a condition for the grant of the loan that failure to pay back would render the executives of the Society jointly and severally liable to the Bank. The appellant made part payment of the loan and failed to make good the rest. According to the respondent, as at the time of the initiation of the action, the balance unpaid was 13,622,489 cedis which appellant failed to pay. The trial court entered judgment for 14,312,391 cedis against the appellant being the state of his indebtedness as at 12th January 2001. The trial court also awarded damages of three million five hundred thousand (3.5million) cedis against the appellant for his conduct in depriving the other members of the Society of their right to enjoy loan facilities from the Bank. The appellant, who initially admitted most of the respondent's averments except for the balance of the loan, has now turned round to challenge respondent's capacity as well in bringing the action.
Dissatisfied with the judgment of the Denu High Court, the appellant raised four grounds of appeal for our determination, to wit:
(a) The judgment is against the weight of evidence.
(b) The High Court failed to give adequate consideration to the defendant's case.
(c) The learned trial judge failed to consider the legality of the interest exacted from the defendant.
(d) The learned judge also failed to give consideration to the iss