NDK Financial Services Limited v. Mawuli Ababio

The parties to this suit are a Limited Liability Financial Services Institution and a Business Consultant respectively.

By its writ of summons and statement of claim issued from the registry of this Court on 10th December 2017, the Plaintiff sued for: a) An order for the repayment of the sum of Five Million, Twenty -Seven thousand, Eight Hundred and Fifty-One Ghana Cedis, Thirty -Five Pesewas (GH₵5, 027, 851. 35) being the outstanding debt as at 26th January, 2017 in respect of the loan granted to the defendant.

b) An order for the judicial sale of the Mortgaged Property being Parcel No. 181, Block 6 Section 114 situate at Balewashie and covered by Land Title Certificate No. GA 15598 vol.

53 Folio 64 (commonly known as Property No. 4 Parsnip Street, East Legon); c) Interest on the above outstanding sum at the contractual compound interest rate of 4. 5%per month from 26th January, 2017 till date of final payment; d) General damages for breach of contract; and e) An order for payment of Legal fees and costs.

THE PLAINTIFF’S CASE As part of its core business of providing loans and investments, the Plaintiff alleged that at the request of the defendant, it extended a loan facility of Two Million Ghana Cedis (GH₵2, 000, 000. 00) to the Defendant on 31st March 2015, to expire on 30th June 2015, that is, for a period of ninety (90) days.

It is the Plaintiff’s case that the agreed interest rate was 4. 5% per month plus a 2. 5% flat default charge on any outstanding balance.

The Defendant secured this facility with his landed properties at East Legon and Labone, Accra.

He however failed to hand over the title documents of the East Labone property to the Plaintiff prior to the loan draw down.

Upon default in repayment, and at the request of the defendant, the Plaintiff extended the repayment date to 7th October, 2015. Yet, the Defendant failed to liquidate his indebtedness such that by 26th January 2017, his outstanding indebtedness stood at GH¢5, 027, 851. 35. THE DEFENDANT’S CASE By its Amended Statement of Defence filed on 5th July 2018, the Defendant did not deny that he requested for a loan of Two Million Ghana Cedis (GH₵2, 000, 000. 00) on 31st March 2015, and the Plaintiff approved the same on 1st April, 2015 to expire on 30th June, 2015. He however alleged that the compound interest of 4. 5% per month and default charge of 2. 5% per month on the outstanding balance are harsh and unconscionable.

The Defendant also averred that his primary source of r