FIRST NATIONAL SAVINGS & LOANS CO. LIMITED v. NANA ACHIAA BOAKYE T/A NAKBAK ENT
2015
HIGH COURT
GHANA
CORAM
- HER LADYSHIP ANGELINA MENSAH-HOMIAH (MRS.) JUSTICE OF THE HIGH COURT
Areas of Law
- Banking and Finance Law
- Civil Procedure
- Evidence Law
2015
HIGH COURT
GHANA
CORAM
AI Generated Summary
In a case filed on 21/12/2013, the Plaintiff Bank sought to recover GH¢552,247.00 from the Defendant for defaulted loan and overdraft facilities, with interest and potential judicial sale of a mortgaged property. The Defendant denied the claims, arguing fraud by a bank manager. The key issues were the validity of the loan documents and overdraft, and whether the Defendant was indebted as claimed. Evidence presented included testimonies and forensic handwriting analyses. Ultimately, the court found that the Defendant was liable for GH¢384,910.65 with interest, relying on principles such as unjust enrichment and estoppel by written document. The court dismissed the enforceability of a disputed and improperly documented mortgage.
JUDGMENT
On 21/12/2013, the Plaintiff Bank instituted an action against the Defendant herein for three reliefs, namely:
a) Recovery of the sum of Five Hundred and Fifty Two Thousand Two Hundred and Forty-Seven Cedis ( GH¢ 552, 247.00) being the outstanding balance on loan and overdraft facilities granted to the Defendant pursuant to Banking facility Agreement dated 22nd June, 2011.
b) Interest on the sum at the contractual default rate of 60% per annum from 1st December 2013 till date of final payment.
c) Alternatively Judicial Sale of property described as Plot No. 6 Manu Crescent Pankrono, Kumasi.
The Plaintiff's case is that on or about 22nd June 2011, it granted a loan facility of One Hundred Thousand Ghana Cedis (GH¢100,000.00) to the Defendant who trades under the name Nakbak Enterprise to augment her business capital. The Plaintiff also extended an Overdraft Facility (O/D) of One Hundred and Fifty Thousand Ghana Cedis (GH¢ 150,000.00) to the Defendant for the same purpose. The tenure of the facilities were 24 and 12 months respectively, at an interest rate of 36% per annum. It was also agreed that the facilities could be called in if the Defendant failed to abide by the terms. The Defendant is said to have secured the facilities with the property on Plot N0. 6 Manu Crescent Pankrono, Kumasi. The instant action was therefore instituted upon the Defendant's default.
The Defendant's version is an outright denial of the Plaintiff's case. She averred that she was a customer of HFC Bank- Adum Branch where she encountered a Loan officer by name Fred Boakye Yiadom. She stated that at a point in time, she wanted a Letter of Credit (LC) to purchase fish from Dakar and the said Boakye Yiadom recommended a company by name West Capital company. She paid an amount of GH¢ 50,000.00 to that company but the company failed to establish the LC. Her money was not also refunded. Further, the Defendant averred that Fred Boakye Yiadom assured her that she will move to the Plaintiff Bank as a manager and would give her the money. Whilst in London where she is ordinarily resident, Plaintiff said she received a phone call from Fred Boakye Yiadom who requested her to send a written request for a loan to pay off her debt at HFC and she did exactly that. The Defendant contended that it was the said Boakye Yiadom who informed her that he had paid GHS 100,000.00 to HFC and moved her account to the Plaintiff Bank but she did not sign any documentation to that effect. In his