FIRST ATLANTIC BANK LIMITED vs RICHKAB ENTERPRISE LIMITED & ANOTHER

The Plaintiff claims as per an amended Writ of Summons and Statement of Claim issued out of the Registry of this Court on the 8th Day of March, 2022, the following claims:

1. Recovery of an amount of Seven Hundred and Sixty-Seven Thousand, Five Hundred and Twenty Six Ghana Cedis, Twelve pesewas (GHC767,526.12) as at 15th April, 2019.

2. Interest at the agreed interest rate of 30% per annum as per the facility agreement and addendum to offer letter from 15th April, 2019 and continuing until final payment

3. Damages for breach of contract

4. Order for Judicial Sale of mortgaged property situate at Amrahia in the Greater Accra Region with Land Certificate No.: TD. 14374, Volume 019, Folio 6262 at Lands Commission, Accra.

5. Costs

Case of the Plaintiff

The case of the Plaintiff as per its Amended Statement of Claim is that in 2019, it took over the assets and liabilities of the Energy Commercial Bank. 1st Defendant which is engaged in the business of selling electrical cables and appliance is a customer of the now defunct Energy Commercial Bank. The 2nd Defendant is the Managing Director of 1st Defendant and extended a Director’s guarantee in respect of the loan granted the 1st Defendant. According to the Plaintiff, in or about 13th March, 2018 by an offer letter, Energy Commercial Bank granted the 1st Defendant a 90 day deferred document credit time line for the amount of One Million Ghana Cedis (GHC1,000,000.00) at an interest rate of 30% to purchase stock for its business. The facility was to be repaid within twelve months and was to be paid with regular lodgment of sales proceeds from 1st Defendant’s business with Energy Commercial Bank. Furthermore, the facility was secured by a legal mortgage of Defendant’s property at Amrahia Accra with Certificate No.: TD. 14374, Volume 019, Folio 6262 at Lands Commission, Accra, an assignment of stock of GHC500,000.00. According to the Plaintiff, by an addendum dated 4th April, 2018 the facility was amended to include an overdraft of Three Hundred Thousand Ghana Cedis (GHC300,000.00) to purchase local stock and clearing for a period of twelve months at an interest rate of 30% per annum and a 120 day deferred documentary credit line of Seven Hundred Thousand Ghana Cedis (GHC700,000.00) for 12 months with a 120 days cycle per letter of credit. The Plaintiff contends that the 1st Defendant defaulted in the repayment of the facilities and despite repeated demands from officials of the Plaintiff bank and the fi