GH - KAAS FISHERIES LTD. v. BARCLAYS BANK OF GHANA LTD.

JUDGMENT OF BROBBEY J.

On 6 January 1988 judgment was awarded against the defendant-applicants in the sum of ¢27,146,206 with interest of 23½ per cent. After some efforts by the plaintiff-respondents to demand payment of the debt and failure of the applicants to make payment, the respondents went into execution. In the middle of the execution, the applicant filed the instant application for orders to set aside the execution and to pay the debt by agreed instalments.

The main arguments advanced by Dr. Seth Twum who appeared for the applicants in respect of the first relief is that the execution itself is illegal in so far as it was based on interest which was not permitted by law. In further development of that point, Dr. Twum argued that Order 42, r.15 of the High Court (Civil Procedure) Rules, 1954 (L.N. 140A) authorised the courts to grant interest at the rate of four per cent but the original court order stipulated 23½ per cent and, additionally, that the bank in calculating the amount owed seemed to have used the prevailing bank rate as well as compound interest.

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After considering all the authorities cited, the motion paper, the supporting affidavit and the affidavit, in opposition as well as arguments put forward for land against the motion, I find the legal position to be as follows: Firstly, interest is payable on a judgment debt, in terms of Order 42, r.15, as has been agreed upon by the parties. In the instant case, the agreement, on the basis of which the loan was granted and which culminated in the debt was not exhibited. However since the judgment already referred to mentioned 23½ per cent, I assume that that rate was what the parties agreed upon and which the court duly enforced. As the judgment rightly pointed out, that interest was payable up to the date of final payment.

Secondly, where debt arises under an agreement and action is taken to recover the debt, the debt will merge with the judgment and what will thereafter become recoverable will be the judgment debt. Interest payable on that judgment debt up to the date of final payment is what is provided for by law. Until February 1984 the law was as contained in Order 42, r.15 of L.N. 140A. That law which was enacted in 1954 was that interest exigible was four per cent, as Dr Twum rightly contended. On 10 February 1984 the Courts (Award of Interest) Instrument, 1984 (L.I. 1295) was promulgated, L.I. 1295 provided that the interest which the court may award shall be at the preva

JUDGMENT OF BROBBEY J.

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KAAS FISHERIES LTD. v. BARCLAYS BANK OF GHANA LTD.

Areas of Law

JUDGMENT