FIDELITY BANK GHANA v. SAMETRO COMPANY LIMITED & 2 ORS
2019
COURT OF APPEAL
GHANA
CORAM
- IRENE CHARITY LARBI MRS. J.A (PRESIDING)
- L. L. MENSAH J.A
- ANGELINA M. DOMAKYAAREH MRS. J.A
Areas of Law
- Banking Law
- Contract Law
- Civil Procedure
2019
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The appeal arises from the High Court's dismissal of the Plaintiff's application for summary judgment. The Plaintiff sought relief for repayment of bank guarantees and overdraft facilities, while the Defendants counterclaimed alleging predatory financing. The Court of Appeal affirmed the High Court's decision, finding no merit in the Plaintiff's appeal and dismissing it entirely.
Irene Charity Larbi (Mrs) J.A
(1) This is an interlocutory appeal from the ruling of the High Court Tarkwa dated 25th April, 2018. In that ruling, the High Court dismissed an application brought by the Plaintiff/ Appellant under Order 14 Rule 1 of C.I.47 praying for summary judgment.
(2) On 27th July, 2017, the Appellant (then the Plaintiff) issued a writ against the Respondents, (then the Defendant’s) for the following reliefs:
“A)An order for the immediate repayment of an amount of
Five Million Ghana Cedis (Gh₡5,000,000.00) being the value of the Bank Guarantee which was called in my MTN on the 25th day of July 2017.
B) Interest at the prevailing commercial rate on the amount
of (Gh₡5,000,000.00) being the value of the Bank Guarantee from the 26th day of July 2017 till date of final payment.
C) An order for the immediate repayment of an amount of
Seven Million, Twenty-Eight Thousand, Six Hundred and Thirty-Five Ghana Cedis Twenty-Seven Pesewas (Gh₡7,028,635.27) being the balance of the Overdraft facility as of the 26th day of July, 2017.
D) Interest at the contractual rate of 38.15% per annum on
the Overdraft facility as of 26th day of July, 2017.
E) Default interest of 7% per annum on the outstanding
amounts per relief A and C from the 26th day of July, 2017 till date of payment.
(3) And/Or In The Alternative:
F) An order for judicial sale of stock i.e. MTN airtime and
products assigned and domiciled to Plaintiff as security for
the facilities advanced by Plaintiff to 1st Defendant.
G) An order for the judicial sale of the following properties
advanced by Plaintiff to 1st Defendant;
(i) Plot No.5 situate, lying and being at Low Cost Residential
Area, Tarkwa in the Western Region:-
(ii) Plot No.128 situate, lying and being at Africa Residential
Area, Takoradi in the Western Region.
(iii) Plot No.60 situate, lying and being at Shiashie East Legon,
Accra in the Greater Accra Region.
(iv) Parcel No.6827, Block 16, Section 114 situate, lying and being
at Nungua Newtown, Accra in the Greater Accra Region.
(v) Cost of these proceedings including Lawyer’s fees.
The writ was accompanied by a Statement of Claim.
(4) Upon service of the writ and Statement of Claim on the Defendants (Respondents herein) they entered appearance and filed a Statement of Defence and Counterclaimed for the following reliefs:-
a) A declaration that the financial arrangements of the Plaintiff with the 1stDefendant’s were a scheme of predatory financing.
b)