GHANA HOME LOANS LIMITED VS KWAKU AMOAH & ANOR

This matter was first called before this court for case management on the 22nd of December, 2015. During this session, the parties were ordered to file their witness statements and documents they intended to rely on. However, by the 25th of April, 2016, the Defendants had failed to attend any of the case management meetings.

On the 25th of April, 2016, the Defendants still had not filed their witness statements. Consequently, this court struck out the Defendants' defense and decided to hear the Plaintiff on its claim at a later date. The Plaintiff was subsequently heard on the 28th of November, 2016.

Plaintiff's Background:

The Plaintiff is a limited liability company incorporated under the laws of Ghana. It is engaged in the business of mortgage financing and operates as a non-bank financial institution under the supervision of the Bank of Ghana.

Details of the Case:

The two Defendants, on or about the 14th of April, 2010, at their request, had a facility of $60,000.00 approved by the Plaintiff. This facility was granted at an agreed interest rate of 18% per annum on a reducing balance from the date of disbursement. It was further agreed that in the event of a default by the Defendants, the applicable interest rate would increase to 22.5% per annum (see exhibit CD1).

As security for the facility, the Defendants provided residential property numbered Plot No. 10, Block 89, 1st Lane, Hill City, Brekuso, Eastern Region. A copy of the Mortgage Agreement is exhibited as exhibit CD2.

After servicing the facility for a while, the Defendants defaulted, prompting several reminders from the Plaintiff, culminating in exhibit CD3, which is a letter before action from the Plaintiff's solicitors. The Plaintiff has consequently sued the Defendants for the outstanding balance of $51,890.79 on the facility granted, along with interest on this amount at the rate of 22.5%.

Court Proceedings:

The court has heard and received the Plaintiff’s witness statement and has taken an adjournment, hoping that the Defendants will take steps to properly engage in the matter again. The Defendants' failure to cross-examine the witness amounts to an admission by the Defendants (see Hammond v. Amua & Anor. [1991] 1 GLR 89).

Even though the court struck out the Defendants' defense, it is noted that they do not dispute the facility amount. According to exhibit CD1, the agreed interest is 18% (CD1, clause 1.2 states that the Interest Rate means 18.00% a year, variable rate). Theref