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HFC BANK (GH) LIMITED vs PAUL KUMAH & ANOTHER

2018

HIGH COURT

GHANA

CORAM

  • JUSTICE GEORGE BUADI J.

Areas of Law

  • Property and Real Estate Law
  • Banking and Finance Law
  • Civil Procedure

AI Generated Summary

Justice George Buadi of the High Court (Commercial Division, Accra) dismissed an originating application by an applicant bank seeking a warrant to recover possession of a mortgaged seven-bedroom, three-storey house at Plot No. 12, Soldier Line, Asofa, North Ofankor, Accra. The respondents secured a USD $120,000 facility with the property, acknowledged demand notices, but denied default and disputed the bank’s claimed indebtedness of GHS 407,661.60, alleging fraud and asserting overpayment. The bank grounded its request on sections 13 and 24 of the Home Mortgage Finance Act, 2008 (Act 770) and section 34 of the Borrowers and Lenders Act, 2008 (Act 773). The court held those 2008 enactments inapplicable because the transactions were executed in 2007; the controlling law was the Mortgages Act, 1972 (NRCD 96), which affords possession via peaceful entry or an action of possession, not a court-issued warrant. Given strongly contested facts and reliance solely on affidavit evidence, the court found the procedure inappropriate, dismissed the application, and awarded costs of GHS 2,000 to the respondents.

RULING