IDEAL FINANCE LIMITED v. SKY CONSULT GHANA LIMITED & ORS
2016
HIGH COURT
GHANA
CORAM
- SAMUEL K. A. ASIEDU
Areas of Law
- Banking and Finance Law
- Contract Law
- Property and Real Estate Law
- Equity and Trusts
- Commercial Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The case revolves around the plaintiff's attempt to recover an outstanding loan amount of GH₵207,306.66 from the defendants, which included higher monthly interest and the judicial sale of properties used as securities. The court ruled largely in favor of the plaintiff, upholding its method of interest calculation but found the seizure and sale of collateral vehicles wrongful due to unregistered collateral. The responses were rooted in substantial case laws and statutory interpretations, enforcing the fixed-rate amortization method for interest and emphasizing the necessity of registering charges. The 1st defendant's counterclaims were dismissed because of a lack of evidence and incorrect legal standing.
JUDGMENT
By a writ of summons filed on the 27th March, 2014 the plaintiff claims against the defendants:
a. The sum of GH₵207,306.66 being outstanding balance in respect of the loan granted 1st defendant.
b. Interest on (a) at the monthly rate of 6.5% per month from March 10th, 2014 till date of final payment.
c. Cost
d. Attorney‘s fee being 10% of the sum owed.
e. Judicial sale of the 3rd defendant’s landed properties assigned to plaintiff and which properties are described in paragraph 8 of the statement of claim.
An appearance was entered and later statement of defence filed jointly by the 1st and 2nd defendants and separately by the 3rd defendant after service of the writ and statement of claim. The plaintiff filed a reply. After the failure of pre-trial settlement, the matter was set down for hearing. The plaintiff gave evidence per its representative and called witnesses to close its case. The 2nd defendant gave evidence for himself and on behalf of the 1st defendant and closed its case. The 3rd defendant also gave evidence and announced the closure of his case thereafter.
From the pleadings filed by the parties the court finds and holds that the following facts are not in issue as a result of admission by the defendants.
It is not in dispute that the 1st defendant is a limited liability company incorporated in Ghana and in the business of the financial services consulting, money transfer services and business development services. The court also finds that by a letter dated 30th day of July, 2012, exhibit A herein, the first defendant applied to the plaintiff for a credit facility of Gh₵300, 000.
That by an offer letter dated 13th of August, 2012, exhibit B herein, the plaintiff approved a loan of GH₵300, 000 for the 1st defendant on the terms and conditions contained in the said letter. Again the court finds as a fact that by a credit facility agreement dated the 15th August, 2012, exhibit C herein, the 1st defendant was granted a loan of GH₵300,000 to augment its working capital. The parties agree that the said loan was to attract interest at the rate of 6.5% per month.
It is also not in dispute that the loan granted to the 1st defendant together with the interest was to be repaid within a period of 12 months to expire on the 15th of August 2013.
The Court finds that the defendants admit that it was a term of the loan agreement that upon default of the monthly repayment agreed upon the 1st defendant would pay a penalty charge of 10% pe