LORINDA TOO LIMITED & ORS vs BOND FINANCIAL SERVICES LIMITED

This case involves a dispute between a company (1st plaintiff) and its directors (2nd and 3rd plaintiffs) against a financial institution (defendant) over a loan default and subsequent property auction. The plaintiffs obtained a loan from the defendant, secured by a property owned by the 3rd plaintiff. After defaulting on the loan, the defendant initiated an auction of the property. The plaintiffs sued to declare the auction null and void, claiming lack of due process. The defendant counterclaimed for the recovery of the loan amount. Throughout the proceedings, the plaintiffs failed to appear in court multiple times despite being served with hearing notices. As a result, the court dismissed the plaintiffs' claims due to lack of prosecution and proceeded to hear the defendant's counterclaim. The court found in favor of the defendant, ordering the plaintiffs to pay the outstanding loan amount of GH¢182,547.10, plus interest at the contractual rate of 3.5% per month. The court also awarded costs of GH¢20,000.00 to the defendant. This case highlights the importance of actively prosecuting one's case in court and the consequences of failing to do so. It also demonstrates the enforceability of loan agreements secured by mortgages and the legal process for recovering defaulted loans through the judicial system.