Paa Kow Cole v. Agricultural Development Bank and Anor
2016
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP R. B. BATU J.
Areas of Law
- Commercial Law
- Banking and Finance Law
- Tort Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The plaintiff, a university lecturer, wrote a cheque for GH₵10,000 at the behest of a friend who was also the acting manager at the bank. The cheque overdrew the plaintiff's account, and the bank used his salary to repay the overdraft. The plaintiff sued, claiming the deductions were illegal. The court found that the plaintiff's actions indicated collusion with his friend, dismissing the claims against the bank.
The facts of this case are not complicated.
The plaintiff is a lecturer in mathematics at the University of Cape Coast. He is also a customer with the first defendant at its Cape Coast branch.
The second defendant is a longtime friend of the plaintiff.
They grew up together in Swedru and attended Swedru Secondary School together.
Second defendant attended University of Ghana and Plaintiff attended University of Cape Coast where he became a lecturer after he had completed his masters program.
Second Defendant was transferred to the University of Cape Coast branch of the first Defendant bank as a credit officer.
They both lived in the same neighbourhood, Pedu five minutes’ walk apart.
The Manager of the University of Cape Coast branch of the Defendant bank went on a 72 day extended leave and the Second Defendant became the Acting Manager.
On 22nd July, 2010, the Second Defendant approached Plaintiff for a financial help.
He explained that he needed Ten Thousand Ghana Cedis (GH¢10, 000. 00)urgently.
He had become untiled to A Sixty-Five Thousand Ghana Cedis(GH¢65, 000. 00) housing loan but still owned Ten Thousand Ghana Cedis(GH¢10, 000. 00) on a car loan he had taken.
He therefore needed the Ten Thousand Ghana Cedis (GH¢10, 000. 00) to pay off the car loan to unable him access the Sixty-Five Thousand Ghana Cedis (GH¢65, 000. 00) loan.
He (Plaintiff)told Second Defendant that he had just about Two Thousand Ghana Cedis in his account and could not help.
The following day the Second Defendant again went to him over the issue and explained to him that Plaintiff could help him with an overdraft, that is, money he could get in case of emergency and that he (Second Defendant) could arrange the overdraft.
The Plaintiff wrote a cash cheque, Exhibit“1” endorsed the back of the cheque and gave it to the Second Defendant.
Second Defendant promised that within three days he would pay back the money into the Plaintiff’s account.
On the same 23rd July, 2010, Second Defendant managed to get the cashier of his bank Mr. John Tandoh to pay the Ten Thousand Ghana Cedis to him.
This far is the Plaintiff’s story.
The Bailiff returned the writ of summons and statement of claim meant to be served on the Second Defendant to the docket on 23rd December, 2010 with the explanation that the Plaintiff failed to direct service.
The version of the Second Defendant as to what happened between the two was not available to the court.
When the Branch Manager of Cape Coast U