LIBERTY CAPITAL LIMITED v. MR. PRINT LIMITED & DICK MENSAH
2016
HIGH COURT
GHANA
CORAM
- SAMUEL K. A. ASIEDU
Areas of Law
- Contract Law
- Evidence Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The plaintiff company sought recovery of GH¢2,649,211.38 against the defendants, interest, guarantee orders, and costs. The trial proceeded after failed pre-trial settlements, with testimonies from both sides. The court addressed key issues, finding the defendants jointly indebted to the plaintiff and in breach of their agreements. The court relied on corroborated evidence and legal principles regarding document interpretation and burden of proof. It concluded that the defendants failed to honor their debt and dismissed their counterclaims, awarding the plaintiff the claimed amount with interest and additional costs.
JUDGMENT
By a writ of summons issued on the 15th day of November, 2012 the plaintiff company claims against the defendants herein:
(i) Recovery of GH¢2,649,211.38 (Two Million Six Hundred and Forty Nine Thousand Two Hundred and Eleven Ghana Cedis Thirty-Eight Pesewas) being balance of debt owed by the defendants.
(ii) Interest on the said sum from 9th November, 2012 till the date of final payment at the monthly rate of 5% per month.
(iii) An order to arrest the 2nd Defendant to furnish sufficient security against any judgment to be recovered against them.
(iv) Costs.
(v) Any other order(s) as this Honourable Court may deem fit.
After the entry of appearance and consequently after the close of pleadings and the failure of pre-trial settlement, the case was fixed for trial. The plaintiff gave evidence through a representative and then closed its case. The defendants also gave evidence through the 2nd defendant who is the Managing Director of the 1st defendant company. Two persons were also invited to testify on behalf of the defendants.
The following issues come up for determination by the court; that is:
1. Whether or not the Defendants are jointly and severally indebted to Plaintiff in the sum of GH¢2,649,211.38 (Two Million Six Hundred and Forty Nine Thousand Two Hundred and Eleven Ghana Cedis Thirty-Eight Pesewas) or any other sum.
2. Whether or not Plaintiff acquired 55% of the shares in 1st Defendant Company as a consideration to off-set the latter’s indebtedness.
3. Whether or not 1st Defendant is in breach of the Corporate Guarantee given to Plaintiff.
4. Whether or not 2nd Defendant is in breach of the Personal Guarantee given to Plaintiff.
In respect of the first issue set out above, that is, whether or not the defendants are jointly and severally indebted to Plaintiff in the sum of GH¢2,649,211.38 (Two Million Six Hundred and Forty Nine Thousand Two Hundred and Eleven Ghana Cedis Thirty-Eight Pesewas) or any other sum, the court finds from the evidence on record that on the 20th day of May, 2011 the 1st defendant represented by its Managing Director issued a commercial paper in favour of the plaintiff to cover an amount of GH¢1,560,519.01. This finding is supported by the said commercial paper which was tendered and received in evidence as exhibit. The court finds from the evidence on record that the amount stated in exhibit ‘A’ is a consolidation of various credit facilities which the plaintiff had, upon request, made available t