G.N. BANK GHANA LIMITED v. MRS OLIVIA NTI KYEREMEH & ANOTHER
2018
HIGH COURT
GHANA
CORAM
- Dr. Richmond Osei-Hwere
Areas of Law
- Banking Law
- Contract Law
2018
HIGH COURT
GHANA
CORAM
AI Generated Summary
The court ruled in favor of the Plaintiff, ordering the 1st Defendant to pay the outstanding loan amount plus interest at the commercial bank rate, and alternatively allowing for judicial sale of the property used as collateral if the debt is not defrayed.
JUDGMENT
On the 8th of October, 2014 the Plaintiff instituted an action against the 1st and 2nd Defendants jointly and severally for the following relief:
a. Recovery of the sum of one hundred and sixty-three thousand eight hundred and eighty-five Ghana cedis being outstanding balance on a restructured loan facility granted to the defendant pursuant to a banking facility agreement dated 31st October 2012;
b. Interest on the sum at the contractual rate of 60% per annum from 15th June 2014 till date of final payment; and
c. Alternatively, judicial sale of Plot No. 13 Block H, Agogo, Ashanti-Akim North in the Ashanti region.
The Plaintiff’s Case
The Plaintiff’s case is that it is a limited liability company registered under the laws of Ghana to engage in the business of banking. It is the case that the Defendant has been their client prior to 2010 and that in 2010, the 1st defendant was granted an overdraft facility. As at 31st August 2012, the overdraft balance stood at about GHC 79,054.00. The defendants aver that upon the request of the first defendant, the overdraft facility was restructured into a loan facility to be paid within a period of 24 months at an interest of 3.5% per month. According to the plaintiff, the Defendants’ home at Plot No. 13 Block H Agogo was used as collateral for the loan and the memorandum of the title deeds was deposited with the Plaintiff as evidenced by Exhibit E. The plaintiff has also exhibited a loan facility agreement which was entered between the parties. It is the plaintiff’s case that the 1st defendant has refused to pay off the loan facility which as at 15th June 2014 stood at GHC 163,885.00 and this includes the principal and interest. Also, the 1st defendant has failed to abide by the terms of the loan facility agreement. The plaintiff avers that since 31st October 2012, the 1st defendant has only paid a total amount of GHC 6,445.00 leaving an outstanding amount to be paid. It is the case of the plaintiff that the 1st defendant has admitted her indebtedness to the Plaintiff by exhibiting Exhibit MNK 1.It avers that their Exhibit A is the full version of Exhibit MNK 1.
The Defendants’ Case
It is the case of the defendants that the relationship between the parties began prior to 2010 and that sometime in October 2012, they approached the Plaintiff to convert an overdraft facility granted into a loan facility but the conversion was never done. The 1st defendant says she has paid GHC 151,283.00 as repayment in re