MULTI CREDIT SAVING & LOAN v. VERSION APRICOT & ANOR
2018
HIGH COURT
GHANA
CORAM
- ANGELINA MENSAH-HOMIAH (MRS.) JUSTICE OF THE HIGH COURT
Areas of Law
- Contract Law
- Civil Procedure
2018
HIGH COURT
GHANA
CORAM
AI Generated Summary
The Plaintiff sued the Defendants to recover the outstanding loan amount and accrued interest. The court decided on the issue of entitlement to interest and penalty based on legal arguments. The Plaintiff's claim was upheld due to admissions by the Defendant and applicable legal principles on awarding interest. However, the court found the interest rates to be excessive and adjusted them to prevailing commercial bank lending rates.
JUDGMENT
The Plaintiff herein commenced an action against the Defendants herein on 27/04/2017 wherein it claimed the reliefs as set out below:
a) An order for the recovery of the sum of GHC 495,611.80 being the principal outstanding of GHC 472,011.24 and interest including penalty of GHC 23,600.56 owing and due as at March 2017 on the loan and overdraft granted by the Plaintiff in May, 2012 and February, 2015 to the 1st Defendant and guaranteed by the 2nd and 3rd Defendants which the Defendants have failed and/or refused to pay notwithstanding repeated demands on them by the Plaintiff.
b) Contractual interest including penalty interest on the said sum from 1/4/17 to date of judgment and thereafter at prevailing commercial bank interest rate till date of final payment.
c) Costs, including solicitor’s fees.
d) Any further order(s) or other relief(s) that the court may seem fit to make.
The 1st Defendant entered appearance through its lawyer, Francis Koffie, Esq on 10/05/17 and proceeded to file a defence on 01/06/17. The matter was partially settled at pre-trial, and the sole issue which has been placed before this court for trial is:
1. Whether or not the Plaintiff is entitled to interest and penalty.
On 30/04/2018 when the matter was placed before the trial court, the court directed that the issue will be disposed of by legal arguments. Hence, an order was made for counsel to file their legal arguments simultaneously on or before 18/05/2018. Counsel for the Plaintiff was further directed to take steps for the court notes of the day and a hearing notice to be served on counsel for the 1st Defendant. An affidavit of service filed by P.G. Danquah, a bailiff, attached to the Commercial Court, Kumasi, sworn on 08/05/2018 indicates that the court order dated 30/04/2018, and a hearing notice were duly served on Francis Koffie, Esq, through his clerk, Maxwell. From the court’s records, counsel for the Plaintiff filed his submissions on 22/05/2018 but as of the time of writing this judgment, counsel for the 1st Defendant had not filed his submissions, he is therefore deemed to have waived his right to be heard.
For the Plaintiff, counsel submitted that the bank is entitled to interest and penalty on the sum claimed from 01/04/17 to the date of judgment, and thereafter at the prevailing commercial bank interest rate till date of final payment. He supported his position with case law and Legislation: (i) Holland West Africa & Anor v. Pan African Trading Co.