IFS FINANCIAL SERVICES VS NANA APIANTUA IV & ANOR
December 21, 2015
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP K. A. OFORI-ATTA
Areas of Law
- Contract Law
- Banking and Finance Law
- Commercial Law
- Civil Procedure
December 21, 2015
HIGH COURT
GHANA
CORAM
AI Generated Summary
On 8 October 2013, the plaintiff sued in the High Court to recover loans and related charges extended to the 1st Defendant in December 2011. The plaintiff advanced GH¢40,000 and GH¢24,500 under written offers accepted by the 1st Defendant, bearing 5% per month compounded interest and a two‑month tenure, with a penal interest of 7.5% per month compounded upon default and a GH¢50 fee per default event. The loans were to finance an LPO from the World Food Programme. Security included assignments of two Mitsubishi Pajeros (GE 17 Z and GT 17‑11), and a personal guarantee by the 2nd Defendant; the suit was later discontinued against the guarantor. The 1st Defendant issued Ecobank Ghana cheques totaling GH¢68,600 that were dishonoured for lack of funds. The Court ordered trial by affidavit; counsel for the 1st Defendant filed no submissions. Applying the parties’ agreed terms and C.I. 52, and citing Guinness Ghana Ltd. v. Rafsco Distributing Ltd. on bills of exchange, the Court entered judgment for the plaintiff for the reliefs on the writ and awarded GH¢10,000 costs.
On 8th October, 2013 the plaintiff caused a writ of summons herein together with a statement of claim to be sued out of the Registry of this Court for the following reliefs? (a) The sum of GH¢100, 929. 21 being the principal and interest accrued as at 29th August, 2012 which Defendants have failed to pay.
b) Interest on (a) calculated at the prevailing rate from August, 2012 until date of final payment(c) Costs(d) An order for the judicial sate of two Mitsubishi Pajero vehicles with registration numbers GE 17 Z and GT 17-11 respectively.
The material allegations of facts of the Plaintiff’s case are that in December, 2011 at the request of 1st Defendant, Plaintiff advanced a loan facility of GH¢40, 000. 00 to Defendant.
The facility carried an interest of 5% per month compounded and had a tenure of two months.
Further, in the same month of December 2011 the 1st Defendant requested for another facility of GH¢24, 500. 00. The facility was approved and advanced to 1st Defendant.
It also bore interest of 5% per mensem and had a tenure of two months.
Both loans were subsequently consolidated and the terms and conditions thereof accepted by the 1st defendant by letter dated 30th December, 2011. Under the terms and conditions of the said facilities 1st defendant was supposed to repay the loan facility together with interest on 29th February, 2012. Further the 1st Defendant agreed that a penal interest of 7. 5% per month was to be applied to the facility in the event of a default in the repayment terms. In addition a further flat fee of GH¢50. 00 was to be applied to the 1st Defendant’s account for each occasion of default in the repayment of principal or interest or both as shall be levied.
As security for the loan 1s Defendant executed two deeds of assignment over Mitsubishi Pajero vehicles with Registration Numbers GE 17 Z and GT 17-11. The 2nd Defendant executed a personal guarantee in Plaintiff’s favour as further security for the repayment of the loan to the 1st Defendant.
It has been averred that as part of the repayment arrangements 1st Defendant issued Ecobank Ghana cheques with a total face value of the amount involved being GH¢68, 600. 00 which cheques were all dishonoured for paucity of funds in her accounts It has finally been alleged that the 1st Defendant has defaulted on her repayment obligations under the loan facility in spite of repeated and persistent demands hence the writ of summons herein.
The 1st Defendant filed a statement of defen