Oyibi Area Rural Bank v. Al-Mega Supplies & Logistics and 2 Ors
2019
HIGH COURT
GHANA
CORAM
- HER LADYSHIP, JUSTICE GIFTY AGYEI ADDO
Areas of Law
- Contract Law
- Banking and Finance Law
- Civil Procedure
2019
HIGH COURT
GHANA
CORAM
AI Generated Summary
Presided over by Justice Gifty Agyei Addo of the Ghana High Court, this matter concerns a commercial loan granted by a lending plaintiff to the 1st Defendant for business purposes, guaranteed by the 2nd and 3rd Defendants using specific collateral (a Hyundai Santa Fe and a house at Plot 12, 4th Approtech Street, Adenta, Accra). The plaintiff disbursed GH260,000 on February 12, 2016 at 5% monthly interest, with repayment due January 12, 2017; the borrower defaulted and by September 2018 owed GH575,383.63. After service upon the defendants and substituted service on the 3rd Defendant, the parties signaled an intention to settle and filed terms on July 17, 2019. The Court entered consent judgment, fixing a total settlement sum of GH500,000, with GH50,000 due by the end of July 2019 and the remaining GH450,000 payable over thirty months at GH15,000 per month. Legal costs of GH75,000 (15% of the debt) were also ordered with structured payment. The consent judgment provides an enforcement mechanism: upon any default, the outstanding becomes immediately due and the plaintiff may execute with leave of the Court.
On 25th January, 2019, the Plaintiff instituted this action against the Defendants for the following reliefs as endorsed on the writ of summons and statement of claim: a. A declaration that the Defendants are jointly and severally liable for the payment of GH¢575, 383. 63 to the Plaintiff.
b. Payment of the GH¢575, 383. 63 owed to the Plaintiff by the Defendants.
c. Interest on the said amount owed by the Defendants till date of final payment at the prevailing commercial bank rate or in the alternative, d. Judicial sale of the vehicle Hyundai Santafe with registration number GS 9272-12 with Chasis No. KM8SB73DO3U36803 and the two bedroom self-contained house with a three bedroom boys quarters at plot number 12, 4th Approtech Street, Adenta, Accra used as collateral and guarantee for the loan.
e. Costs including legal fees f. Any other order(s) this Honourable Court may deem fit.
The gravamen of the Plaintiff’s claim is contained in paragraphs 4 to 15 of the statement of claim, a summation of which is as follows: According to the Plaintiff, on 2nd February, 2016, the 1st Defendant applied to it for a loan facility of GH¢160, 000. 00, payable within twelve (12) months, for its business activities.
The Plaintiff continues that on 12th February, 2016, it advanced the loan of GH¢160, 000. 00 to the 1st Defendant at an interest rate of 5% per month.
The Plaintiff says that the 2nd and 3rd Defendants guaranteed this loan amount with a Hyundai Santafe with registration number GS 9272-12 and Chasis No. KM8SB73DO3U36803 and a two-bedroom self-contained house with a three bedroom boys quarters located at Plot No. 12, 4th Approtech Street, Adenta, Accra.
It is the case of the Plaintiff that the loan was due for repayment on or before 12th January, 2017. That the 1st Defendant reneged on its promise to pay back the loan facility on the agreed date.
The Plaintiff avers that as at September, 2018, the 1st Defendant owed the Plaintiff a total sum of GH¢575, 383. 63 and interest continues to accrue thereon.
That the instant suit has been mounted for the reliefs sought by reason of the aforementioned.
The writ of summons and statement of claim were served on the 1st Defendant through its Director and on the 2nd Defendant personally, both on 22nd February, 2019. Upon failure to serve the writ of summons and statement of claim personally on the 3rd Defendant, same were served on him by substituted service.
From the records, the 1st and 2nd Defendants entered condit