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NDK Financial Services Ltd v. Allied Cocoa Products Ltd

2018

HIGH COURT

GHANA

CORAM

  • JUSTICE GEORGE BUADI J

Areas of Law

  • Contract Law
  • Civil Procedure
  • Banking and Finance Law

AI Generated Summary

NDK Financial Services Ltd, a non-banking financial institution, approved a GH¢3,500,000 loan to Trade Haulage Ghana Limited (THGL) after the defendant, a cocoa products company, issued an undertaking dated 15 January 2013 promising to pay GH¢219,730 to NDK and THGL jointly when payment for THGL’s supplied raw materials became due. THGL failed to retire the loan and later breached supply specifications; NDK obtained judgment against THGL in July 2014 and rescheduled repayment. In August 2016 NDK demanded GH¢219,730 from the defendant and sued in December 2016. Justice George Buadi held that the undertaking operated like a guarantee contingent on payment becoming due and a wrongful sole payment to THGL, neither of which occurred. He further held NDK failed to notify or join the defendant before suing THGL and that the rescheduling agreement between NDK and THGL superseded Exhibit A. The suit was dismissed, with costs of GH¢10,000 against NDK.

JUDGMENT