N.D.K. Financial Services v. Joseph Ade Coker
2016
COURT OF APPEAL
GHANA
CORAM
- M. OWUSU, (J.A.) - Presiding
- HONYENUGA, (J.A.)
- TANKO, (J.A.)
Areas of Law
- Contract Law
- Commercial Law
- Civil Procedure
2016
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
In 2014, the plaintiff appealed against a High Court ruling that rejected an auditor's interest calculation on the defendant’s debt. The High Court found the interest calculation methods unconscionable. On appeal, the Court of Appeal reviewed the terms of settlement that initially capped the debt at Gh¢1,000,000 with a 6% compound interest rate upon default. It was found that the High Court could not unilaterally amend these terms. The Court of Appeal reinstated the agreed terms, focusing on the clear agreement by both parties. Thus, the High Court ruling was set aside, affirming the original settlement terms.
MARIAMA OWUSU, J. A.
On 22nd day of August, 2014, the High Court, (Commercial Division)Accra, ruled among other things as follows: “The Court thinks that the expression in respect of the mode of the calculation of interest is almost meaningless.
A calculation of interest per month at the rate of 6% should suffice.
For these reasons the figure arrived at by the Auditor as the amount owing by the defendant is not only unconscionable but completely unacceptable and the same is set aside.
The parties are hereby directed to appear before the Registrar of the Court on the 28th day of August, 2014 with evidence of payments made by the defendants up to the 31st December, 2011. The Registrar shall then on the basis of the evidence ascertain how much of the Gh¢1, 000, 000. 00 was still outstanding by the defendant on 31st December, 2011. The interest shall then be calculated at simple interest at the rate of 6% per month on the amount due and owing by the defendant on 31st December, 2011. The interest shall be calculated on the amount due from 19th September, 2008 to the date. ”Dissatisfied with the decision of the High Court, the plaintiff appealed to the Court of Appeal on the following grounds: a. The ruling is against the weight of evidence.
b. The learned trial Judge erred when he held that the meaning of the default clause contained in paragraph 2 (a) (vi) of the terms of settlement is unclear and obscured.
c. The learned trial Judge erred when he held that interest“exigible” on the outstanding balance on the sum of Gh¢1, 000, 000. 00 (one million Ghana cedis) at the date of default shall be calculated on simple interest basis.
d. The learned trial Judge erred when he held that the mode of the calculation of interest set out in the terms of settlement is almost meaningless.
e. The learned trial Judge erred when he rejected the quantum of defendant’s indebtedness arrived at by the Auditor appointed by the court.
f. Other grounds of appeal will be filed upon receipt of the record of proceedings.
The relief sought from the Court of Appeal is that the ruling of the High Court, (Commercial Division), Accra dated 22nd August, 2014, be set aside and the findings of the Auditor appointed by the court entered as judgment of the court.
On the 9th of February, 2016, pursuant to an order of this court, the plaintiff amended the notice of appeal to read as follows: a. The ruling is against the weight of evidence.
b. The learned trial Judge acted without jurisdi