JOSHUA BOTWE YEMOH v. THE ATTORNEY GENERAL & OTHERS
2015
COURT OF APPEAL
GHANA
CORAM
- KANYOKE, J.A. (PRESIDING)
- ACQUAYE, J.A.
- WELBOURNE(MRS), J.A
Areas of Law
- Commercial Law
- Contract Law
2015
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The High Court dismissed the plaintiff's claim for failure to provide the statutory 30-day notice under the Borrowers and Lenders Act, 2008. The plaintiff appealed, arguing misinterpretation of Section 32(1) of the Act. The appeal was successful, with the Appellate Court concluding that the 30-day notice requirement was specific to credit secured by charges and did not apply to the plaintiff's situation. The initial judgment was set aside, and judgment was entered in favor of the plaintiff against all defendants jointly and severally for the recovery of GH¢2,176,011.33.
JUDGMENT
MARIAMA OWUSU, J.A.:
On 9-9-2013, the High Court, Commercial Division, Accra dismissed plaintiff’s action for lack of Statutory Compliance. The court held among other things as follows:
“Reliefs 1 and 2 of 1st defendant’s counterclaim are accordingly refused.
I enter part judgment in favour of 1st defendant. I declare that plaintiff’s failure to give the statutory 30 days notice was in clear contravention of the Borrowers and Lenders Act of 2008 (Act 773).
There shall be no order as to costs.”
Dissatisfied with the decision of the trial court, the plaintiff appealed to this court on the following grounds:
a. The learned trial Judge erred in law by misapprehending the import and effect of Section 32 of the Borrowers and Lenders Act, 2008 (Act 773) which resulted in miscarriage of justice.
b. The learned trial Judge erred in law by failing to make a determination on the issues regarding the liability and defaults of the other respondents.
c. The judgment is against the weight of evidence adduced at the trial court.
The reliefs sought from the Court of Appeal are:
1. That the reliefs sought by the plaintiff at the High Court be granted and the ruling of the High Court reversed.
2. Any other order or orders as this court may deem fit.
Before dealing with the arguments for and against this appeal, I will give a brief background of the case.
The plaintiff/appellant (hereinafter referred to as the plaintiff) claimed against the defendants jointly and severally
i. the recovery of the credit facility of two million, one hundred and seventy-six thousand and eleven Ghana cedis, thirty-three pesewas (Gh¢2,176,011.33)
ii. interest on the said amount from November 14th, 2011 till date of final payment
iii. cost.
In the 15 paragraph Amended Statement of Claim, the plaintiff averred that, 1st defendant secured a contract for the building of Senior High School Infrastructural Project and approached the plaintiff for a credit facility to enable it undertake the said project.
The plaintiff averred further that 2nd, 3rd, 4th and 5th defendants who are limited liability companies engaged in insurance business pooled together to provide credit guarantee jointly and severally for the due payment of a credit facility issued by the plaintiff to 1st defendant. The plaintiff continued that on 9-8-2010 it executed a loan facility for the 1st defendant for the sum of two million Ghana cedis (Gh¢2million) to enable the 1st defendant undertake the contract