E. K. BONSU LTD v. PRUDENTIAL BANK LTD
2016
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP ERIC KYEI BAFFOUR JUSTICE OF THE HIGH COURT
Areas of Law
- Defamation
- Credit Reporting
- Statutory Compliance
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The application by the defendant to stay proceedings pending compliance with statutory provisions was successful. The court ruled that the plaintiff must first comply with section 43 of the Credit Reporting Act, 2007, Act 726, which mandates the resolution of disputes through the Bank of Ghana before resorting to legal action in court. The application was not considered belated despite the defendant having filed a statement of defence.
RULING
Defendant/Applicant seek by this application to stay proceedings of the court pending what he terms as mandatory compliance by the Plaintiff of a statutory provision. The mandatory provision he refers to is section 43 of the Credit Reporting Act, 2007, Act 726. To the applicant as the plaintiff in his claim allege having been defamed based on what plaintiff believe to be inaccurate information provided to XDS Credit Reference Bureau by defendant, the plaintiff ought to have first resorted to the mechanism for resolution of such disputes with the Bank of Ghana before resorting to legal action in the court.
Plaintiff/respondent ardently opposes the application on a number of grounds. One that the application is belated in the sense that the applicant had waived his right to have the matter settled before the arbitral forum created by the law. This he contends that defendant has filed a statement of defence and that amounts to the taking of fresh step. Again to the plaintiff the dispute is not about the operations of the Credit Bureau, XDS Data but mainly has to do with an action the defendant which has made him suffer disrepute in the eyes of the public.
It is provided under section under section 43 of Act 726 as follows:
“(1) A complaint shall be submitted in writing to the Bank before redress is sought in a Court for the settlement of grievance under this Act.
(2) The Bank shall investigate the matter and determine it in accordance with this section.
(3) Where the Bank receives a complaint or notice of a dispute, the Bank shall (a) cause the matter to be investigated, and
(b) settle the dispute or complaint to the satisfaction of the parties concerned, unless the Bank considers the matter to be frivolous or vexatious.
(4) A person dissatisfied with a decision of the Bank may appeal to the High Court.
The Bank here means the Bank of Ghana and the law requires that before any person who has suffers harm arising from the supply of inaccurate or incomplete information about the person is entitled to commence an action in Court against the data provider or credit bureau, by demonstrating that the data provider negligently provided the information which has caused harm to the person, and to seek an injunction or otherwise from the Court to restrain the publication of the inaccurate information. However, this cannot be done unless the aggrieved person has first complied with section 43 of the Law. Clearly then, the action of Plaintiff in this cour