MANSELL GHANA LIMITED vs ACESS BANK GH. LTD & ANOR

Justice George Buadi of the High Court (Commercial Division), Accra, refused an interlocutory injunction sought by the Applicant to restrain the 1st Defendant from honoring calls on a Standby Letter of Credit (SBLC) and Deed of Charge, and to restrain the 2nd Respondent bank from calling on those securities. The Applicant operates under a 3 September 2010 Uncommitted Revolving Stock Import Finance Agreement (URSIFA) with the 2nd Respondent and executed a Deed of Charge as security, claiming to have provided SBLCs covering 15% of utilizations. Alleging the bank failed to respond to utilization requests, open letters of credit for imports from supplier ED & F Man, and terminated short-term collateral, the Applicant sought interim relief. Applying Order 25 of the High Court (Civil Procedure) Rules, 2005 (C.I. 47) and authorities such as Kerr on Injunctions, Saunders v Smith, Owusu v Owusu Ansah, and Odonkor v Amartei, the court held the Applicant failed to establish a prima facie legal right and was in default of contractual obligations, including not maintaining required collateral. The application was dismissed, status quo maintained, and GHa2,000 costs awarded to the 2nd Respondent.