GH - DANIEL OFORI v. ECOBANK GHANA LTD

INTRODUCTION

The issue provoked for determination in this application simple as it may appear, has been vehemently contested by counsel for the parties with intensity. The 1st Defendant/ Respondent/Respondent/Applicant (hereinafter referred to as the “Applicant”) invites this court to determine whether the Plaintiff/Appellant/Appellant/Respondent (hereinafter referred to as the “Respondent”) who is Judgment/Creditor is entitled to compound interest on the judgment sum of Gh¢6,162,240.00, between the period of 2nd June 2008 (the investment date) to 25th July 2018 (the date of judgment) to be calculated monthly or annually? For the Applicant, although per earlier decisions of this Court, the Respondent is entitled to compound interest on the judgment sum, the same is to be calculated annually as per the opinion expressed by the Bank of Ghana pursuant to an order of this court. The Respondent however refutes this assertion, contending that, per the Applicant’s own practice and representations, he is entitled to monthly compound interest as a Judgment/Creditor.

On the 13th day of May 2021, the Applicant applied to this court for an order setting aside the Respondent’s Notice of Amended Entry of Judgment filed on 6th April 2021.
The application was anchored essentially on the claim that, the Respondent had miscalculated the amounts due him on the principal investments and the interest thereon as per his Amended Entry of Judgment dated 6th April 2021. The Respondent contended that by the commulative effect of the substantive judgment and rulings on interest by the Supreme Court, the interest payable on his investment was 30% compounded monthly. This when calculated gave him a figure of GHC142,623,613.25. This figure attracted interest of 13,34% and when calculated in accordance with of the decisions of the Supreme Court the total amount due and owing as at that date came to GHC151,018,312.85.
The Applicant’s position was that the compound interest awarded by the Supreme Court was to be compounded annually and not monthly. When annual compound interest is used for the calculation the figure comes to GHC89,852,411.88. If the interest rate of 13.34% is applied to this figure the total amount due and owing at that date was GHC96,304,972.41. The Applicant admitted that the judgment debt was GHC96,304,972.41 and not the figure that was endorsed on the Amended Entry of Judgment by the Respondent.
On the