ECOSAFE GHANA LTD VS MRS. ADWOA AGYEKUM
2016
HIGH COURT
GHANA
CORAM
- HER LADYSHIP, JUSTICE DOREEN G. BOAKYE- AGYEI
Areas of Law
- Contract Law
- Civil Procedure
- Banking and Finance Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
This case involves a dispute over two collateral management service transactions between the Plaintiff and Defendant. The Plaintiff sued to recover GHC1,009,118.47 plus interest for facilities provided in June and July 2013. The court found that different interest rates applied to each facility - 9% per month for the June transaction and 8% per month for the July transaction. The court ordered repayment of the June facility at GHC635,566.75 less GHC50,000 already paid, with 9% monthly interest, and a recalculation of the July facility based on 8% monthly interest. The case highlights principles of contract interpretation, burden of proof in civil cases, and the enforcement of contractual terms.
The Plaintiff on the 13th of January, 2014 issued out a Writ of Summonsagainst the Defendant for the following Reliefs: a. An order for the recovery of GHC 1, 009, 118. 47 being the sum total of Defendant’s indebtedness to Plaintiff arising out of monies advanced toDefendant as part of Collateral Management Services provided toDefendant by Plaintiff on the 6th June, 2013 and 30th July, 2013. b. Interest on the said amount to be calculated at the agreed interest rate of 9% from the 3rd of December, 2013 to date of final payment.
c. Costs of this litigation.
This according to the Statement of Claim was as a result of two Collateral Management Services rendered the Defendant by them, the first on 06/06/2013 in the sum of GHC400, 000. 00 at the interest rate of 9% per month to be paid back by 05/09/2013. This made the accrued interest be in the sum of GHC96, 000. 00 which had to be paid together with the principal.
Defendant defaulted and as a result had by 30/11/2013 become indebted to plaintiff in the amount of GHC636, 566. 75. Then for the second transaction, Plaintiff at the instance of Defendant provided the second amount of GHC260, 000. 00 to Defendant on 30/07/2013 at the agreed interest rate of 9% per month to be paid back by 30/09/2013. That this meant that an interest amount of GHC46, 800. 00 was to be paid back together with the principal amount but Defendant defaulted and as at 2nd December, 2013 Defendant had become indebted to Plaintiff in the sum of GHC372, 551. 72 The Defendant on 23/01/2014 caused an Entry of also Appearance to be filed on her behalf followed by a Statement of Defence on 10/02/2014 denying the Plaintiff’s claims in part.
The Defense challenged the agreed interest rate of 9%and stated it was rather 8% and that monies paid by Defendant to the tune of GHC200, 000. 00 had not been taken into account in the calculations.
Plaintiff then filed a Reply on 27/02/2014 in which they averred that the parties had initially agreed on 8% interest rate per month but same was subsequently reviewed to 9% per month by the parties per the Term Sheet dated 19/09/2013. That Defendant paid GHC200, 000. 00 but it was used with the consent of the Defendant to defray part of a third facility advanced her on 11/09/2013 which was to be paid back with interest by 11/11/2013. That Defendant paid off the third facility before the Writ was issued and therefore it had not been mentioned in the suit.
After an unsuccessful Pre-trial, the matter came to th