ECOBANK GHANA LTD VS KRIFAS TELECOM LTD & ORS

The Plaintiff’s claim against the Defendants jointly and severally was for the recovery of the sum of GH¢1,358,295.93 together with interest at a rate of 23.5% per annum from June 21, 2013, till the date of final payment. The Plaintiff also had a claim in the alternative against the 5th Defendant for an order directed at the 5th Defendant to pay an amount of GH¢1,142,240.00 together with interest due to the 1st and 2nd Defendants on the fixed deposit held by the 5th Defendant to the Plaintiff.

The Plaintiff’s case, put simply, was that it had disbursed a series of facilities to the 1st Defendant, a limited liability company. These were as follows:

1. A credit facility in the nature of an overdraft of GH¢200,000.00 on May 13, 2010.

2. A credit facility in the nature of an overdraft of GH¢600,000.00 on October 19, 2010.

According to the Plaintiff, the total facility of GH¢800,000.00 attracted an interest rate of 26.0% per annum, subject to variation at the Plaintiff’s discretion. This facility was to expire not later than May 31, 2011. The Plaintiff stated that the 1st Defendant defaulted in repayment, resulting in the overdraft facility being converted into a loan in the sum of GH¢1,148,896.94 as of February 21, 2012. The interest rate on the restructured facility was 23.5% and was for a period of 12 months from the date of restructuring.

The Plaintiff averred further that the securities for the restructured loan consisted of:

- An assignment/lien over a fixed deposit in the sum of GH¢1,142,240.00 held by the 5th Defendant, 1st National Savings and Loans Ltd.

- A Joint and Several Guarantee of Directors of the 1st Defendant Company (i.e., 3rd and 4th Defendants) in the sum of GH¢1,200,000.00 and any interest accruing thereon.

- Directors’ Board Resolution of the 2nd Defendant (which was a subsidiary/related company of the 1st Defendant) to bear the liability of the 1st Defendant in the event of the 1st Defendant’s default.

It was the Plaintiff’s contention that by a letter dated March 31, 2010, the 5th Defendant wrote to the Plaintiff undertaking to transfer the fixed deposit being held by it on behalf of the 1st and 2nd Defendants to the Plaintiff on maturity of the fixed deposit. However, to date, none of the 1st to 4th Defendants had made good on their indebtedness. The 5th Defendant had also failed to transfer the fixed deposit on maturity to the Plaintiff as previously agreed.

The 1st to 4th Defendants filed a joint defense in which they