ELECTROLAND GHANA LTD vs WONDER AKORTIA & ANOR
2024
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP, JUSTICE PATRICK BAAYEH(J)
Areas of Law
- Property and Real Estate Law
- Evidence Law
- Commercial Law
2024
HIGH COURT
GHANA
CORAM
AI Generated Summary
The Plaintiff obtained judgment to recover a monetary sum from the Defendant and attached the Defendant's immovable property for execution. The Claimant contended that the property was encumbered by a legal mortgage securing a loan. However, the Claimant did not produce mortgage documents and only had title deeds deposited as collateral. This led the court to examine whether such deposit constitutes a legal mortgage. The court held that a mere deposit does not create a legal mortgage and dismissed the Claimant's claim for failing to demonstrate a legal mortgage or any interest warranting discharge of the property from execution.
In the instant interpleader action, the Plaintiff/Judgment Creditor (now referred to as the Plaintiff) obtained judgment on 10th August, 2021 to recover from the Defendant/Judgment Debtor (now referred to as the Defendant), the total sum of GH¢748, 134, interest at the prevailing commercial bank rate of GH¢436, 412 and cost of GH¢10, 000. 00. The Plaintiff proceeded to execute the judgment against the Defendant by attaching the Defendant’s property by Fieri Facias and attached Defendant’s immovable property described as a multi-story commercial property situate at Hohoe in the Volta Region.
The property was valued at the market price of GH¢4, 880, 912. 00 and a forced sale value of GH¢2, 928, 527. 00. The Claimant UniCredit Gh.
Ltd (in receivership) claims that the property is encumbered by a legal mortgage as the said property was used as security for the payment of a loan facility granted by the Claimant to the Defendant.
In its affidavit of interest deposed to by the legal Attorney of the Liquidator, the Claimant deposed that on 16th August, 2019, the Bank of Ghana revoked the operating license of 23 Savings and Loans and financial House Companies including UniCredit Gh Ltd and appointed Eric Nana Nipah as Receiver (Exhibit 2) and as part of his mandate, he is required to wind down the affairs of the Claimant.
That records available to the receiver indicate that at the request of the Defendant trading under the Name and Style of Wonak Abie Enterprise, the Claimant granted the Defendant a Credit Facility in the sum of GH¢400, 000 for the purpose of completing an Office Complex and Working Capital (See Exhibit 3). The said Loan Facility was to be repaid in twelve (12) months commencing from March 2018 to March 2019 at a monthly interest rate of 3. 6%. That the credit facility was secured with a legal mortgage over an uncompleted two storey Commercial property situate at Hohoe Torkoni belonging to Wonders Akortia (the Defendant). The facility was further secured by a legal mortgage over an uncompleted two storey commercial building known as Block A and Block B situate at Hohoe – Gbi Blave also belonging to the Defendant.
As part of the security for the loan Defendant deposited the original title documents to the said property with the claimant (Exhibit 4). The claimant says the Defendant defaulted in the repayment of the loan as laid down in the facility agreement.
It is the Claimant’s case that as at the date of receivership on 16th August, 2019, th