GHANA GROWTH FUND LTD. VS BOKAN LIMITED & ORS

The Plaintiff herein by a writ filed on the 15th day of April 2014 seeks the following reliefs against the Defendants jointly and severally:

a) Recovery of the sum of One Million, Nine Hundred and Forty One Thousand, Eight Hundred and Eighty Cedis, Ninety Two Pesewas (GH¢1,941,880.92) being the outstanding balance of the facility, as at 31st March, 2014.

b) Interest on the outstanding balance at 4% per month, compounded daily from 1st April, 2014 till final payment.

c) Costs including Plaintiff's legal Costs.

Or in the alternative: An order for the judicial sale of the following properties used as collateral:

(i) No. 3 Block O, house No. 107 Owusu Poku Road, Ayigya, Kumasi with Certificate NO. 19171, Folio 183.

(ii) No. J298/1, off Coco Beach Street, with title Certificate GA/NO. 19171, Folio 179, Vol. 35

The Plaintiff's case is that it is a private equity company providing financial support among others to corporate entities and businesses in Ghana. The 2nd and 3rd Defendants are directors of the 1st Defendant, a Ghanaian registered limited liability company whilst the 3rd and 4th Defendants are property owners who offered their respective properties to be used as collateral for the facility arrangement between Plaintiff and 1st Defendant.

Plaintiff avers that sometime in 2011, the 1st Defendant applied for a facility to import sugar into this country. Further to this application, Plaintiff granted the 1st Defendant a loan of Five Hundred and Thirty Thousand, Two Hundred and Eighty Ghana Cedis, Forty Five Pesewas (GH¢530,280.45) to facilitate the importation of 12,500 metric tons of sugar. This facility was for a period of 360 days at an interest rate of 4% per month, compounded daily. Personal guarantees were executed by the 2nd and 3rd Defendants who are directors of 1st defendant to secure the facility. Additionally, the 4th and 5th Defendants offered their respective properties as collateral for the due repayment of the loan facility.

According to Plaintiff, the Defendants are in default of their repayment obligations such that their indebtedness to Plaintiff stood at One Million, Nine Hundred and Forty One Thousand, Eight Hundred and Eighty Ghana Cedis, Ninety Two Pesewas (GH¢1,941,880.92) as at the 31st day of March, 2014. It is on the basis of the foregoing that Plaintiff has instituted the present action.

The 1st, 2nd, 3rd and 5th Defendants filed a joint Statement of Defence to Plaintiff's writ. Though they admit being granted a facilit