2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
In this Ghana High Court action, NDK Financial Services Ltd sued 21st Century Construction Limited and its individual guarantors to recover a commercial loan and enforce security. NDK had advanced GH 2,000,000 under facility documents, later restructured to mature on 12 August 2014, and secured by a mortgage over the borrowers Millennium City property and guarantees from the 2nd and 3rd defendants. After persistent defaults, NDK recalled the facility and demanded payment; Exhibit J showed an outstanding balance of GH 2,179,810.60 as at 31 August 2014. The court resolved four issues: it found the defendants indebted; determined payments in JulyOctober 2014 totaled GH 60,625; held the recall was not premature under Exhibit Ds default clause; and granted all reliefs including recovery, contractual compound interest, a 2.5% default charge, judicial sale of the mortgaged property, and costs.
The plaintiff a licensed non-bank financial institution claims against the defendants as follows: i. An order for recovery of the sum of GH¢2, 179, 810. 60 (Two Million One Hundred and Seventy Thousand, Eight Hundred and Ten Ghana Cedis, Sixty pesewas) against Defendants jointly and severally.
Interest on the sum of GH¢2, 179, 810. 60 (Two Million One Hundred and Seventy Thousand, Eight Hundred and Ten Ghana Cedis, Sixty pesewas) at the rate of 4. 2 % per month compound calculated on a 30 day per month basis from 31st August, 2014 till date of final payment against the Defendants jointly and severally.
A default charge of 2. 5 % of the total judgment debt (exclusive of costs). iv.
Judicial sale of the mortgaged property in satisfaction of the judgment debt.
The plaintiff averred in its Statement of Claim that on or about 25th July, 2013 at the request of the 1st Defendant, a Limited liability Company, it granted and disbursed to it a loan facility of GH¢2, 000, 000. 00 (Two Million Ghana Cedis) with the terms and conditions contained in a facility letter dated as in the above mentioned date.
Upon which terms the 1st Defendant ought to have fully retired the facility after six months from the date of the grant.
It was unable to fully liquidate the said facility before its expiry on the 12th of February, 2014 therefore at its request the 1st Defendant asked that the facility be restructured.
This was done as contained in the facility letter of 11th February, 2014. The 1st Defendant provided as security for the repayment of the facility its immoveable property within the Millennium City at Gomoa Fetteh.
As further security for the repayment of the said loan, the 2nd and 3rd Defendants executed a Deed of Guarantee in support of same.
Plaintiff contended further that the facility though yet to expire has had its repayment fraught with persistent defaults and in accordance with the terms and conditions governing the facility it is entitled to call in same and demand immediate repayment of all outstanding sums. This it has done by a letter dated 14th August, 2014 and as usual like previous demands on the Defendants this has gone unheeded.
As a result the outstanding debt of the Defendants as at 31st August, 2014 is GH¢2, 179, 810. 60 (Two Million One Hundred and Seventy Thousand, Eight Hundred and Ten Ghana Cedis, Sixty pesewas). This it avers by the terms and conditions of the loan is subject to interest of 4. 2% per month compound calculated on a 30 d