PRUDENTIAL BANK LTD. vs MILBERT COMPANUY LIMITED & 3ORS
2022
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE AFI AGBANU KUDOMOR (MRS.)
Areas of Law
- Banking and Finance Law
- Civil Procedure
- Contract Law
- Property and Real Estate Law
2022
HIGH COURT
GHANA
CORAM
AI Generated Summary
In the Ghana High Court in Accra, presided over by Justice Afi Agbanu Kudomor, a debt recovery dispute between a financial institution (the Plaintiff) and multiple Defendants was resolved by consent. The Plaintiff sued in 2013 to recover outstanding balances on a consolidated loan granted to the 1st Defendant and a renewed overdraft facility, also seeking interest at the prevailing bank rate and, in the alternative, judicial sale of mortgaged properties belonging to the 3rd and 4th Defendants at Adenta Housing Estate and Dansoman. During the pre-trial conference, the parties reached a settlement. As at 30 November 2021, the Defendants total indebtedness stood at GH a22,454,873.41, but they negotiated a full and final payment of GH a2271,636.87, with part payments acknowledged in 2022 and a balance due by 30 March 2023. Interest on the negotiated amount was frozen until that date, and default would trigger execution and restoration of the original claim with continuing interest. The Court adopted these terms as its consent judgment.
Whereas by a Writ of Summons and Statement of Claim issued at the Registry of the High Court Accra, on 12th September, 2013 the Plaintiff claimed against the Defendants the recovery of the following:
a) The sum of One Hundred and Five Thousand, Nineteen Ghana Cedis, Forty- Six Pesewas (GH¢105,019.46) being the balance outstanding on the consolidated loan facility at GH¢50,833.33 granted to the 1st Defendant by the Plaintiff as at 31st July, 2013.
b) Interest on the said sum of One Hundred and Five Thousand, Nineteen Ghana Cedis, Forty-Six Pesewas (GH¢105,019.46) at the prevailing Bank Rate from 1st August, 2013 to date of final payment.
c) The sum of One Hundred and Sixty-Six Thousand, Six Hundred and Seventeen Ghana Cedis, Forty –One Pesewas (GH¢166,617.41) being the balance outstanding on the renewed overdraft facility of GH¢25,000.00 granted to the 1st Defendant by the Plaintiff as at 31st July, 2013.
d) Interest on the sum of GH¢166,617.41 at the prevailing Bank Rate from 1st August, 2013 to date of final payment.
e) Or in the alternative an order for the Judicial Sale of the under-mentioned mortgaged properties:
i. Residential property belonging to the 3rd Defendant herein known as Plot No. 6, Alafia Street Adenta Housing Estate, Accra.
ii. Residential property belonging to the 4th Defendant herein known as Parcel No. 178, Block 5, Section 054, Dansoman, Accra.
iii. Costs.
2. That the parties herein have reached a settlement during the Pre-Trail Conference Stage of this suit and the following terms and conditions for the liquidation of the Defendants indebtedness to the Plaintiff are as follows:
a) That as at 30th November, 2021, the entire indebtedness of the Defendants to the Plaintiff stood at GH¢2,454,873.41 with the breakdown as follows;
GH¢
Consolidated Loan Facility of GH¢50,833.33
Principal Balance 49,953.82
Accrued Interest 226,990.00
Sub Total 276,944.28
Overdrawn Balance on Current Account 2,177,929.28
Total Indebtedness 2,454,873.41
3. That the Defendants shall pay a negotiated amount of GH¢271,636.87 in full and final satisfaction of the entire debt of GH¢2,454,873.41 as at 30th November, 2021.
4. That the Plaintiff acknowledge receipt of an amount of GH¢20,000.00 paid by the Defendants on 13th June, 2022.
5. That the Plaintiff further acknowledges an additional payment of GH¢6,000.00 paid by the Defendants on 29th September, 2022.
6. That the balance of GH¢245,636.87 remaining from the negotiated amount of GH¢27