GN SAVINGS & LOANS LIMITED vs GHANA GROWTH FUND & ORS
2022
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE AFI AGBANU KUDOMOR (MRS.)
Areas of Law
- Evidence Law
- Civil Procedure
- Banking and Finance Law
2022
HIGH COURT
GHANA
CORAM
AI Generated Summary
GN Savings and Loans Limited, formerly GN Bank and First National Savings and Loans Company, brought a High Court action through its Receiver alleging that a 2014–2015 assignment of loan portfolios to Ghana Growth Fund Limited for GH¢144 million was never paid and formed part of a fraudulent intra-group scheme linked to its pursuit of a universal banking licence from the Bank of Ghana. The defendants included Healthcare Network Limited, its board chair and executive director, and other guarantors previously sued in Ghana Growth Fund Ltd v. Healthcare Network Ltd & 3 Others (CM/RPC/0045/2020), in which default judgment had issued for GH¢174,100,037.40 plus interest and damages. In this suit, the 1st Defendant did not enter appearance; the Court entered interlocutory judgment on certain reliefs but required evidence. The plaintiff’s witness relied on a Power of Attorney from Receiver Eric Nana Nipah; the Court found it unstamped and not properly witnessed under Act 549 and Act 689, struck out the attorney’s evidence, and set aside the interlocutory judgment without reaching the merits.
Plaintiff’s claims against Defendants is for the following reliefs:
1. An order setting aside the judgment of the High Court, Commercial Division in suit number CM/RPC/0045/2020 on grounds of fraud.
2. A declaration that the consideration for the assignment of debts from the Plaintiff to the 1st Defendant pursuant to executed Deeds of Assignment made on 14th October 2014 and 2nd February 2015 has not been paid and is outstanding and payable by the 1st Defendant to the Plaintiff.
3. A declaration that the 1st Defendant is indebted to the Plaintiff in the sum of One Hundred and Forty-Four Million Ghana Cedis (GH¢144, 000, 000.00) as of 14th October 2014 being the agreed consideration for the assigned debt portfolios.
4. An order directed at the 1st Defendant herein for the payment of an amount of One Hundred and Forty-Four Million Ghana Cedis (GH¢144, 000, 000.00) with interest calculated at the prevailing commercial bank rate from 14th October 2014 till date of payment.
5. An order for the payment of the judgment sum in Suit Number: CM/RPC/0045/2020 to the Plaintiff herein instead of the 1st Defendant herein.
6. Damages against the 1st Defendant for breach of contract.
7. Costs including Lawyer’s fees.
8. Any other reliefs as may seem fit to the Honorable Court.
Plaintiff alleges that it is a registered Savings and Loans Company currently under receivership and sues per its Receiver.
That Defendants are parties in a suit in the Commercial Division of the High Court, Accra intituled Ghana Growth Fund Ltd v. Healthcare Network Ltd & 3 Others in suit number CM/RPC/0045/2020.
That 1st Defendant herein is a registered private Equity Investment Company incorporated under the laws of Ghana and was Plaintiff in Suit Number CM/RPC/0045/2020.
That Plaintiff was originally known as First National Savings and Loans Company Limited prior to the grant of its banking licence by the Bank of Ghana when it became known as GN Bank.
That 2nd Defendant herein is a Ghanaian registered company engaged in the business of general construction and was the 1st Defendant in suit number CM/RPC/0045/2020.
That 3rd, 4th and 5th Defendants herein were the 2nd, 3rd and 4th Defendants in suit number CM/RPC/0045/2020.
That 4th Defendant herein is the Chairman of the Board of Directors of the 2nd Defendant herein whilst 5th Defendant herein is the Executive Director of the same company.
That 1st Defendant herein as Plaintiff in suit number CM/RPC/0045/2020 alleged in i