N.D.K FINANCIAL SERVICES LTD v. ANDRE KWAME GYENFIE
2016
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP ERIC KYEI BAFFOUR
Areas of Law
- Contract Law
- Evidence Law
- Property and Real Estate Law
- Civil Procedure
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The Plaintiff sought relief for unpaid debts and associated costs from the Defendant, who had obtained loans secured by properties, contending that sale delays due to documentation issues had frustrated the agreement. The court reviewed testimonies and evidence, holding that no frustration occurred, and the Defendant was liable for the unpaid sum. The judicial sale was denied due to an unregistered mortgage deed. Counterclaims by the Defendant were dismissed.
JUDGMENT
Plaintiff in a writ issued claims against the Defendant the following endorsement:
The sum of GHC 5,238,403.46 (Five Million Two Hundred and Thirty Eight Thousand Four Hundred and Three Ghana Cedi Nineteen Pesewas) being the outstanding debt in respect of the loans granted to the Defendant.
Interest at the monthly rate of 4.25 % per month from the 1st August 2015 till date of final payment.
The sum of GHC 130,960.08 (One Hundred and Thirty Thousand Nine Hundred and Sixty Ghana Cedis Eight Pesewas).
Cost and Attorney’s fees being 10% of the sum owed.
Judicial sale of the Defendant’s landed properties which are mortgaged and which properties are described in paragraphs 10 and 11 of the Statement of Claim
PLAINTIFF’S CASE
The basis for the demand of the reliefs endorsed on the writ is captured in the statement of claim that accompanied the writ. Plaintiff avers that the Defendant applied to it for a credit facility of US$800,000.00 to enable Defendant acquire a residential property at Airport Hills. Plaintiff states that it approved the application and granted to the Defendant an amount of GHC2,320,000 (Two Million Three Hundred And Twenty Thousand Ghana Cedi) being the Cedi equivalent of US$800,000 at the then prevailing rate of GHC2.90 to a dollar.
Plaintiff further avers that Defendant applied for an additional credit facility of GHC50,000 (Fifty Thousand Ghana Cedi) to enable the Defendant register his interest in a commercial property situate at Spintex Road. Plaintiff states that it approved the loan by granting the additional facility of GHC 50,000 to the Defendant.
Plaintiff further says that by a letter dated the 25th September, 2014 Defendant applied, for a third time, for an additional loan which the Plaintiff approved, and that pursuant to the approval the Plaintiff granted the amount of Ghc 660,000 (Six Hundred and Sixty Thousand Ghana Cedi).
Plaintiff asserts that all the loans were granted at a monthly interest rate of 4.25% and were to be repaid within three months of the grant of each facility. Plaintiff says that the loan agreements under which the loans were granted contained a term that upon default the Defendant would pay a flat penalty rate of 2.5% on the balance outstanding in addition to the agreed interest.
Plaintiff avers that the Defendant mortgaged two landed properties to it to secure the repayment of the loan; that by a letter dated the 25th day of April, 2014 Defendant executed a mortgage over No.510, Buena