NDK FINANCIAL SERVICES LTD. VS K. B. ANNAN LTD. & ANOR
2024
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE SHEILA MINTA
Areas of Law
- Contract Law
- Civil Procedure
- Evidence Law
2024
HIGH COURT
GHANA
CORAM
AI Generated Summary
The Plaintiff, a financial institution, provided several financial facilities to the 1st Defendant, a construction company, to aid in the completion of a 25-kilometer road construction project. The Defendants claimed the Plaintiff breached an agreement by not releasing funds from interim certificate payments, preventing them from completing the project and repaying the facilities. The court held that Facility III had expired, the Defendants were indebted to the Plaintiff for the amounts claimed, and that no breach of agreement occurred as alleged by the Defendants. The court awarded the Plaintiff recovery of the outstanding amounts without penal interest and ordered the judicial sale of the mortgaged property if necessary.
INTRODUCTION
The 1st Defendant is a company in the business of civil engineering and construction works with 2nd Defendant being its Managing Director.
1st Defendant was awarded some contract to construct a 25-kilometer road on the Twifo Praso-Dunkwa Road by the Government of Ghana through Ghana Highway Authority.
In the execution of this contract the 1st Defendant obtained some facilities from the Plaintiff financial institution from 2014 through to 2016 and according to the Plaintiff, as at the time the Plaintiff issued this Writ against the Defendants, it is owed the sum of GHS10, 880, 617. 00 on Facility I and GHS5, 755, 529. 19 on Facilities II and III by the Defendants.
The Defendants’ defence is that the Plaintiff having received payment for the interim certificate raised by the Defendants ought to have released part of that money as promised to 1st Defendant to enable it complete the project for final payment which would have facilitated the final payment of the contract that could have enabled it pay off its indebtedness.
That having failed to release funds to the 1st Defendant to complete the project the Plaintiff has breached the arrangement and or agreement between the parties and therefore not entitled to its claim.
SUMMARY OF PLAINTIFF’S CASE The Plaintiff’s case briefly is that at the request of the 1st Defendant, it disbursed some facilities to it to augment its business of road construction for a Government of Ghana Highways contract.
According to the Plaintiff the first facility was for the sum of GHS2, 000, 000. 00 per the facility agreement dated 7th May, 2014. In support of its claim the Plaintiff tendered Exhibits “A” and “B” being the 1st Defendant’s letter applying for the facility and the facility agreement.
That by the term of the agreement, 1st Defendant was to retire the said loan by 2nd January, 2015. On 28th July, 2015 the 1st Defendant again requested for and was granted facility II which was disbursed to the 1st Defendant and in support of this second facility the Plaintiff tendered Exhibit “C” (facility letter) and Exhibit “D” (facility agreement dated 28th July, 2015) for the sum of another GHS2, 000, 000. 00. That by the term of the agreement the 1st Defendant was enjoined to retire this facility II by 31st March, 2016. Again, per the Plaintiff’s case the Defendant requested and was granted yet another facility III, in the sum of GHS2, 000, 000. 00 and tendered Exhibit “E” (offer letter) and Exhibit “F” (facility