FERNANDO BAETA VS EXOFUND MONEY LENDING
March 25, 2019
HIGH COURT
GHANA
CORAM
- HER LADYSHIP, JUSTICE GIFTY AGYEI ADDO
Areas of Law
- Civil Procedure
- Contract Law
March 25, 2019
HIGH COURT
GHANA
CORAM
AI Generated Summary
Justice Gifty Agyei Addo of the High Court entered final judgment for an investor against an investment company after the company failed to file a defence under the High Court (Civil Procedure) Rules, 2004 (C.I. 47). The investor had placed GH200,000 in March 2016 at a monthly interest rate of 3.5%, received partial repayments until November 17, 2017, and then the company defaulted, leaving GH100,600 outstanding principal. Relying on exhibits (FB1FB4), including the investment agreement and statements, the court applied Order 13 Rule 1 to grant judgment in default. Applying Order 11 Rule 10(1), it disregarded a later inconsistent interest claim and rejected the relief for GH43,500 accrued interest. The court awarded interest on the outstanding principal at the prevailing commercial bank lending rate from November 17, 2017 until final payment, and costs of GH7,000.000.
The Plaintiff on 24th October, 2018 mounted the instant suit against the Defendant for the following reliefs: 1. An order for payment of the sum of GH¢100, 600. 00 being the outstanding principal sum.
2. An order for the payment of the sum of GH¢43, 500. 00 being the outstanding accrued interest as at 26/09/2018. 3. Costs in the cause with liberty to apply.
4. Any other relief(s) as to the Honourable Court may seem meet.
Per the records of the Court, the Writ of Summons and accompanying Statement of Claim were served on the Defendant on 10th November, 2018, through its Managing Director.
The gravamen of the Plaintiff’s claim is contained in paragraphs 3 to 9 of the Statement of Claim, a summation of which is as follows: The Plaintiff states that sometime in March, 2016, he invested an amount of Two Hundred Thousand Ghana Cedis (GH¢200, 000. 00) with the Defendant company at a monthly interest rate of 3. 5%. The Plaintiff states further that the duration of the said investment was not specified by the parties.
According to the Plaintiff, from March 2016 to 17th November, 2017, he received repayment of part of the principal sum invested and the agreed interest. The Plaintiff continues that since the 17th of November, 2017, the Defendant has failed to repay the remaining principal and the accrued interest, contrary to their agreement, leaving an outstanding principal amount of GH¢100, 600. 00 (One Hundred Thousand and Six Hundred Ghana Cedis), while the outstanding interest payment from 22nd March 2016 to 17th November 2017 is GH¢17, 607. 50. The Plaintiff concludes that despite several attempts and notices to the Defendant for repayment of the amount owed him, the Defendant has failed to liquidate its indebtedness.
Per the records of the Court, the Defendant, through its Counsel, entered appearance on the 22nd of November, 2018. Also from the records of the Court, the Defendant has to date failed to file a defence to the Plaintiff’s claim as required by Order 11 Rule 2 of the High Court (Civil Procedure)Rules, 2004 (C. I. 47). On 19th December, 2019, the Plaintiff as Applicant filed a Motion on Notice for Judgment in Default of Defence.
Same was served on the Defendant as Respondent on 8th January, 2019. On 22nd January, 2019, the Plaintiff followed his application up with a supplementary affidavit in support.
This was also served on the Defendant/Respondent on 26th February, 2019. I have read the processes so far filed, particularly the following