DANGME RURAL BANK LTD VS GALLYWOOD FILM VILLAGE
2016
HIGH COURT
GHANA
CORAM
- JUSTICE JENNIFER ABENA DADZIE
Areas of Law
- Banking and Finance Law
- Civil Procedure
- Contract Law
- Evidence Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The Plaintiff bank sued the Defendant film production company for an outstanding balance on two credit facilities totaling GH¢270,000 plus interest and costs. Despite the Defendant's failure to repay, the court found in favor of the Plaintiff, awarding them GH¢409,681.56 and additional costs. The court noted critical legal principles, including the onus of proof and the obligation of a borrower to repay loans.
The Plaintiff is a limited liability company, duly registered under the laws of the Republic of Ghana and authorized by the Bank of Ghana to provide universal banking services. The Defendant, a customer of the Plaintiff bank, is also a company limited by guarantee and incorporated under the laws of Ghana to engage in film production.
In the Plaintiff’s statement of claim, as amended, the Plaintiff claims against the Defendant the following reliefs:
“a) The recovery of an amount of GH¢409,681.56 inclusive of interest from the Defendant being the total outstanding balance on two credit facilities of GH¢250,000.00 and GH¢20,000.00 granted to Defendant by Plaintiff in May, 2012 and November 2012 respectively as financial support for the completion of Defendant’s school building project the repayment of which have long expired but Defendant has failed and refused to do so despite repeated demands by Plaintiff.
b) Interest on the total outstanding balance of GH¢409,681.56 calculated at 30% per annum from August 2014 till date of final payment.
c) Cost inclusive of Counsel’s fees.”
The material facts which gave rise to the matter before me are stated in Plaintiff’s amended statement of claim and supported by the documentary evidence adduced by the Plaintiff in support of its case. It is the case of the Plaintiff bank that it advanced an overdraft facility in the amount of GH¢250,000.00 to the Defendant on or about May, 2012 at the request of the Defendant to assist Defendant complete its school project (hereinafter referred to as the “Overdraft Facility”). The Overdraft Facility was to attract an agreed interest rate of 30% per annum and was to be fully repaid within twelve (12) months, effective June, 2012 to expire at the end of May, 2013. See Exhibits “A” and “B”, which are the Letter from William Akuffo, the Managing Director of the Defendant company by which the Defendant applied for the Overdraft Facility and the approval letter issued by the Plaintiff in approval of the Overdraft Facility, respectively. According to the Plaintiff, the Defendant, sometime in November, 2012, requested for and was granted further a commercial loan of GH¢20,000.00 for three (3) months to expire in February, 2013, (hereinafter, the “Commercial Loan”). To evidence this transaction, the Plaintiff tendered in evidence Exhibit “C”, the loan application letter written by the Managing Director of Defendant Company, William Akuffo, and Exhibit “D” the commercial loan approval let