GH - NATIONAL INVESTMENT BANK LIMITED vs MIDONAR LIMITED and ORS

I. INTRODUCTION

On 13th February 2020, the Plaintiff herein sued a writ out of the registry for the following reliefs:

a. An order for the recovery of the sum of GHS1,384,806.60 being the outstanding liability on the facility granted to the 1st Defendant;

b. Interest on the said sum of GHS1,384,806.60 at the prevailing interest rate from 21st November 2019 till date of final payment;

c. Judicial sale of the mortgaged residential property situated and numbered as House NO. ANT/AB 35, North West Achimota, Accra;

d. Judicial sale of the mortgaged property designated as Plot No. 2E, 2nd Market Street, Dansoman, Accra;

e. Costs.

The Plaintiff, a company registered under the laws of Ghana and engaged in the business of banking, pleaded that the 1st Defendant is a registered company and its customer and that the 2nd and 3rd Defendants are directors and guarantors of the facility granted the 1st Defendant.
The Plaintiff also pleaded that the 1st Defendant applied for and was granted a term loan by the Plaintiff in the sum of GHS498,844.83 in May 2014, to run for a period of six months at an interest rate of 30% per annum and that the term loan was to run until 22nd November 2014.
The Plaintiff further pleaded that the facility was secured as follows:

a. Legal mortgage over a residential property situated and numbered as House No. ANT/AB 35, North-West Achimota, Accra;

b. Existing legal mortgage over plot of land designated as Plot No. 2E Second Market Street, Dansoman High Street, Accra; and

c. Joint and several guarantees by the Directors of the company.

Plaintiff further pleaded that the 1st Defendant had defaulted in the terms of repayment since its expiration and that the Guarantors had also failed to pay up the facility and further that by the terms of the various contracts executed, the Defendants are jointly and severally liable to pay the total sum owed by the 1st Defendant.
It was also the Plaintiff’s pleading that as at 21st November 2019, the 1st Defendant’s total indebtedness stood at GHS1,384,806.60 and that unless compelled by the court, the Defendants would not fulfil their obligations as several attempts to get them to pay up had proved futile. It therefore claimed against the Defendants jointly and severally the reliefs endorsed on the writ of summons stated in paragraph 1 above.