NTHC LTD v. GHANA COCOA BOARD
2016
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP ERIC KYEI BAFFOUR JUSTICE OF THE HIGH COURT
Areas of Law
- Contract Law
- Evidence Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
Plaintiff filed a suit claiming that the defendant, who extended a loan to Dio Jean Ltd. for the purchase of cocoa, illegally carried forward an outstanding debt from the previous season and applied it to the debt guaranteed for the subsequent season. Plaintiff sought declarations of this practice as unlawful, a refund of the deducted amount, and interest. Defendant denied these claims and contended that plaintiff's allegations had previously been discussed and dismissed. The court determined that the previous judgment did not act as res judicata and ruled against the plaintiff, finding no evidence of illegal or unethical business practices. The court emphasized the burden of proof and persuasion lying primarily on the party making the claim and dismissed the plaintiff's case while awarding costs to the defendant.
JUDGMENT
Plaintiff, a guarantor of a loan advanced by the defendant to a company by name Dio Jean Ltd. for the purchase and delivery of cocoa for the 2012/13 cocoa season, birthed this writ out of the Registry of the court on the 9th of January, 2015 claiming the following reliefs:
i. A declaration that the arrangement between defendant and Dio Jean Co Ltd which led to an outstanding debt of GHc830.000.00 plus interest of Ghc132.800.00 carried forward from the 2011/12 season illegally deducted from the cocoa delivered by Dio Jean Co. Ltd during the 2012/13 season, is an unlawful and unethical business practice.
ii. A declaration that the decision by defendant to illegally deduct the outstanding debt of Ghc830.000.00 plus interest of Ghc 132.800.00 carried forward from the 2011/12 season is unilateral, capricious and arbitrary, in so far as it did not relate to the guarantee issued by plaintiff for the 2012/13 season.
iii. An order directed at the defendant for the immediate refund of the aggregate sum of Nine Hundred and Sixty-Two Thousand, Eight Hundred Ghana Cedis.
iv. Interest on the amount of GHc962.800.00 at the prevailing bank rate and/or commercial lending rate of interest from 16/10/12 continuing till date of final payment.
v. Cost.
STATEMENT OF DEFENCE
Plaintiff provides the basis of his claim to the reliefs in a ten paragraph statement of claim that accompanied the filing of the writ. Plaintiff claims that defendant extended credit facilities to the tune of ten million Ghana Cedis for the purchase of cocoa to Dio Jean Ltd, a licensed cocoa buyer for the 2012/13 cocoa season. As part of the conditions for the grant of the loan it was required to provide a guarantee for the due repayment of the debt of Dio Jean Ltd in the event that Dio Jean Ltd failed to deliver cocoa to the tune of the amount provided it by defendant.
Plaintiff further avers that it did provide an unconditional guarantee defendant requested for from Dio Jean Ltd. Subsequently, Dio Jean Ltd failed to make cocoa deliveries to the level of monies advanced to it prompting defendant to call on the guarantee Plaintiff provided. Plaintiff again claim that it paid an amount of Ghc1.990.581.80 to defendant but later realized that the monies it paid; an amount of Ghc830.000 plus its interest of Ghc132.800 being component of Ghc 1.990.581.80 was as a result of illegal and unethical business practices between defendant and Dio Jean. And that this amount of Ghc830.000 together with i