FRANCIS EDUKU VS SKT AEROSHUTTER LTD & ANOR
2024
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP JUSTICE PATRICK BAAYEH (J)
Areas of Law
- Contract Law
- Civil Procedure
2024
HIGH COURT
GHANA
CORAM
AI Generated Summary
The Plaintiff filed a suit to recover the $430,000 balance from a $500,000 loan granted to the 1st Defendant and guaranteed by the 2nd Defendant using his property as collateral. The Defendants contested, questioning the loan's legality and currency denomination. However, they failed to provide sufficient evidence for their claims, and the court ruled in favor of the Plaintiff, granting the summary judgment for $430,000 with interest and costs.
On 1st September, 2023, Plaintiff issued out of the Registry of this court the instant suit against the Defendants.
Plaintiff’s claims as endorsed on the Writ of Summons are; i. Recovery of the sum of $430, 000. 00 jointly and severally being principal amount outstanding as a result of a loan of $500, 000. 00 granted to the 1st Defendant and same guaranteed by the 2nd Defendant by using his property at Chantan Akweteman, Accra as collateral.
Interest at the prevailing rate as contained in the loan agreement dated 1st may, 2021 till date judgment or in the alternative.
An order of the court to order Judicial Sale of the said property on the land at Chantan, Akweteman, Accra.
Recovery of legal cost including solicitors’ fees.
The Defendants entered appearance on 28th September, 2023 and filed their Defence on 3rd November, 2023. In the instant application, the Plaintiff is seeking an order of this court to enter summary judgment against the Defendants on the basis that the Defendants have no valid Defence to the suit.
In his supporting affidavit, Plaintiff averred that he granted a loan of $500, 000. 00 on 1st May, 2021 to the 1st Defendant acting through the 2nd Defendant who also guaranteed the loan and used his property situate at Chantan, Akweteman, Accra as collateral.
By the terms of the loan agreement (Exhibit “1”) the Defendants were obligated to pay an interest of $12, 000 per month for six months.
That the Defendants have since paid $70, 000 leaving the balance of $430, 000 of the principal amount in addition to the interest. After the payment of $70, 000 the parties executed a document to evidence the payment, (Exhibit “3”). It is Plaintiff’s case that after the expiration of the period allowed for the payment of the interest, the 2nd Defendant issued cheques to the Plaintiff but later instructed the Plaintiff not to present the cheques as there was no money in the account to honor the cheques. (See Exhibit “4”). That per the loan agreement the Defendants were to pay the interest on the loan within six months from the date of the agreement.
Plaintiff later caused his lawyers to write to Defendants on 23rd February, 2023 to demand payment of the loan and the accrued interest (Exhibit “5”), but the Defendants ignored the notice.
The Defendants are opposed to the application for Summary Judgment and have deposed to affidavit to that effect, deposed to by the 2nd Defendant and the Chief Executive Officer of the 1st Defendant Company.
Defend