ECO BANK GHANA LTD. & EDC STOCK BROKERAGE LTD. v. AFARE APEADU DONKOR

JUDGEMENT

KUSI-APPIAH, ( J.A.): The only issue that arises for determination in this appeal is whether the High Court, Accra, Commercial Division was right in holding that the rate of interest applicable on the judgment debt shall vary from time to time as long as the debt remains unpaid. Put differently was the High Court right in holding that the interest rate chargeable on the judgment debt shall fluctuate and not be fixed or crystallized once the debt remains unpaid.

The facts relevant to this appeal were the following: On 19th December 2013, the High Court, Accra, Commercial Division, gave judgment in favour of the plaintiff/respondent, hereinafter called the Respondent against the defendants/appellants, hereinafter called the Appellants for special damages of Gh₵6,770,440 for diminution in value and financial loss. The court also ordered interest to be paid on the said damages from September 2011 till date of final payment.

Subsequently, the respondent entered judgment for the said judgment debt and cost. Pursuant to leave granted by the trial High Court on 9th July, 2015, the respondent amended his Entry of Judgment.

Upon service of the respondent’s amended entry of judgment, the appellants discovered several errors on the face of that process. Notable among the errors was the calculation of the interest payable on the principal judgment debt by compound interest instead of simple interest.

In course of time, the appellants applied to the trial court to set aside the entry of judgment based on the errors and defects found therein. Before the appellants’ application could be heard, the respondent also filed an application to amend the amended entry of judgment at the trial High Court.

On 30th July, 2015, the trial court determined both applications. The High Court after hearing arguments from counsel for the parties, refused the appellants application and granted the respondent’s application to amend his amended entry of judgment and concluded thus:

“The court does not share the view that the rate of interest applicable (which is the statutory 91 days Treasury Bill Rate) becomes frozen as from the date of delivery of judgment…as long as the debt remains unpaid the 91 days Treasury Bill Rate shall apply and shall vary as and when it increases.

If the debtor wants to avoid that situation then he should pay the debt soon after the delivery of judgment or as clos to that date as possible. Otherwise, the plaintiff stands to be deprived of the incr