NDK FINANCIAL SERVICES LTD VS ROBERT ASHIE KOTEI VENTURES LTD & ORS
2024
COURT OF APPEAL
GHANA
CORAM
- SENYO DZAMEFE, JA (PRESIDING)
- NOVISI ARYENE, JA
- GIFTY AGYEI ADDO, JA
Areas of Law
- Banking and Finance Law
- Civil Procedure
- Evidence Law
2024
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The plaintiff, a non-bank financial institution, brought a case against the defendants to recover outstanding loan amounts owed by the 1st defendant company, guaranteed by the 2nd and 3rd defendants. The defendants contested the amounts and claimed procedural difficulties and third-party contributions to their inability to repay. The trial court ruled in favor of the plaintiff, leading to multiple appeals. The Court of Appeal upheld the trial court's decision, affirming that the defendants owed the principal sum but varied the interest calculation to be based on verified figures. Key legal principles involved included the burden of proof, evidence requirements, and the potential need for account reconciliation when disputes over amounts exist.
DZAMEFE, JA
The plaintiff/respondent, hereinafter simply referred to as the plaintiff issued this writ of summons against the defendant for the following reliefs;-
1. An order for recovery of the sum of Gh¢4,719,828.98 (Four hundred and Ninety Thousand Eight Hundred and Twenty-Eight Ghana Cedis Ninety-eight pesewas) being the balance and owing as at 22nd July, 2014, on account of credit facilities extended to 1st defendant company between 13th November, 2013 and 18th July, 2013, repayment of which was guaranteed by 2nd and 3rd defendant but settlement of which defendants have failed to make good several demand notices notwithstanding.
2. Interest on the said sum of Gh¢4,719,828.98 (Four hundred and Ninety Thousand Eight Hundred and Twenty-Eight Ghana Cedis Ninety-eight pesewas) at the rate of 4.6% per month calculated at the close of each day and payable at the end of every month on compound basis from 22nd June 2014, up to and inclusive of date of final payment.
3. Costs, including lawyer’s fees, assessed at 15% of the aggregate sum due and payable under the claim.
The plaintiff is a non-bank financial institution incorporated in and under the laws of the Republic of Ghana. Their case is that by a letter dated 2nd November 2012, 1st defendant applied to it for a credit facility in the sum of cedi equivalent of USD311,600.00 (Three hundred and Eleven Thousand Six Hundred United States dollars). The purpose of the facility, according to the plaintiff, was to enable 1st defendant company supply vehicles to the Ministry of Finance and Economic Planning. The plaintiff avers that by an offer letter dated 13th November 2012, it extended credit facility in the sum of cedi equivalent of USD311,600.00 through the establishment of Letters of Credit (LC). This letter mentioned the plaintiff’s term upon which the LC was established which the 1st defendant company duly accepted and both parties duly executed a loan agreement which set out the terms and conditions of the facility.
It is the plaintiff’s case that after this agreement, the 1st defendant company by a letter dated 2nd January 2013, applied to the plaintiff for a credit facility in the sum of cedi equivalent of USD352,000 (Three Hundred and fifty-two thousand United States Dollars). The purpose of this facility was to enable 1st defendant supply operational items and equipment to the Ghana Police Service. By a letter dated 4th January 2013, the plaintiff granted this facility to the 1st defendant co