DANIEL OFORI VS ECOBANK GHANA LIMITED & ORS
2021
SUPREME COURT
GHANA
CORAM
- YEBOAH, CJ (PRESIDING)
- DOTSE, JSC
- BAFFOE-BONNIE, JSC
- APPAU, JSC
- PWAMANG, JSC
- TORKORNOO (MRS.)
- HONYENUGA, JSC
Areas of Law
- Civil Procedure
- Banking and Finance Law
2021
SUPREME COURT
GHANA
CORAM
AI Generated Summary
The Supreme Court of Ghana, presided over by Chief Justice Yeboah and including Justices Baffoe-Bonnie and Torkornoo, addressed motions by the judgment creditor seeking clarification and review of a prior ruling on how to compute interest on two components of a judgment debt totalling GH¢13,762,240. The dispute centered on whether the 13.34% rate applied post-judgment should be treated as the statutory prevailing bank rate or the 91-day treasury bill rate, and whether post-judgment interest should accrue as simple or compound interest. The Court explained that under CI 52, the statutory rate is the prevailing bank rate at judgment; if that rate is uncertain, the 91-day treasury bill rate becomes the statutory rate. It dismissed the review, clarified terminology, and restated orders: the invested sum accrues 30% compound interest up to July 25, 2018, followed by 13.34% simple interest; the un-invested sum carries 13.34% simple interest from June 2, 2008.
BAFFOE BONNIE JSC: -This ruling is in respect of the application for Clarification and Review filed by the Plaintiff/Judgment Creditor/Applicant.
Following an application for review of this court’s judgment, delivered on 25th July, 2018, this court gave a final order as follows: 1. The GH¢ 6, 162, 240 was to attract interest at the rate of 30% from 2nd June 2008 till date of the Supreme Court judgment (25/7/18), and thereafter, at the statutory rate of interest prevailing at the time of the main judgment.
2. The GH¢ 7, 600, 000 was to attract interest at the statutory rate as at 25/7/2018 from 2nd June, 2008 till date of payment.
Subsequent to the review ruling of the court, the plaintiff filed a motion on notice seeking to amend its entry of judgment filed on the basis of the main judgment.
In the attached proposed entry of judgment, the plaintiff calculated the interest rate on the investment amount of GH¢ 6, 162, 240. 00 on the basis of compound interest. Secondly he stated the statutory rate of interest as at 25/7/1018 as 22%. In its affidavit in answer, the 1st defendant calculated the interest on the investment at simple interest and stated the prevailing rate of interest as at 25/7/2018 as 13. 34%. It is this difference between the parties that the 1st defendant prayed the court to resolve that culminated in the ruling of this court dated 17th June 2020. Their grounds for their respective positions were canvassed in exhaustive statements of case ordered by the court, together with any oral submissions that counsel wanted to add.
In a reasoned ruling filed in the registry, the court held among other things as follows: “the wording of the statute is such that once there is a dispute as to the prevailing bank rate, the treasury bill rate is applicable.
So the defendant shall pay interest at 13. 34% on GH¢ 7, 600. 000 at simple interest from 2/6/2008 to date of final payment So our final orders will be 1. The invested capital i. e. the GH¢ 6, 162, 240 is to attract interest at the rate of 30% at compound interest from 2nd June, 2008 till date of the Supreme Court judgment(25/7/2018), and thereafter at the statutory rate of interest prevailing at the time of the main judgment 25/7/2018, that is, , 13. 34% at simple interest till date of final payment 2 The defendant shall also pay interest on the amount of GH¢ 7, 600, 000 at the Treasury bill rate of 13. 34% from 2/8/2008 till date of final payment’’In that ruling, the Court explained that since t