REPUBLIC BANK VS LORRAINE KWEIFIO-OKAI
2022
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE AKUA SARPOMAA AMOAH J. (MRS.)
Areas of Law
- Banking and Finance Law
- Contract Law
- Evidence Law
2022
HIGH COURT
GHANA
CORAM
AI Generated Summary
Justice Akua Sarpomaa Amoah of the Ghana High Court dismissed a bank6s suit seeking GH21,080,939.85 plus interest and costs from its customer, a businesswoman, for alleged unpaid loan facilities originally granted in USD and secured by a legal mortgage over property F687/1 on Oxford Street, Osu, Accra. Emphasizing burdens under the Evidence Act (NRCD 323), the Court found no documentary proof of formal demands, noted inconsistent account statements (Exhibit C), and the bank6s witness6s inability to state balances on key dates. The bank failed to produce fundamental facility letter(s). Exhibit A carried a date mismatch and was unsupported; Exhibit B acknowledged indebtedness in 2010 but had little probative value on later amounts. The Court rejected inferences without proved facts and unexplained unilateral currency conversion. The action failed and costs of GH210,000 were awarded to the Defendant.
INTRODUCTION
The Plaintiff by its writ of summons filed on the 15th of March, 2017 seeks the following reliefs.
a) Full and final recovery of the sum of GH¢ 1,080,939.85.
b) Interest on the sum of GH¢ 1,080,939.85.
c) Legal fees and costs.
PLAINTIFF’S CASE
The Plaintiff is a Ghanaian registered limited liability company engaged in the business of banking whilst the Defendant is a businesswoman and customer of the Plaintiff.
Plaintiff in its amended statement of claim filed in the 15th of March, 2017 avers that sometime in or about the 16th of August 2007, it offered to the Defendant upon her request, a term loan facility in the sum of Fifty Thousand United States Dollars (USD$ 50,000.00). The loan was at a variable interest rate of 12% per annum (adjustable per the Plaintiff’s cost of funds) and payable over a 15-year period.
The said facility was secured with a mortgage over property numbered F687/1 situate on the Oxford Street Osu, Accra. This facility was to be used by the Defendant to convert her two storey residential buildings to offices and shops for rental.
On the 22nd of January, 2008, the Defendant again requested for and was granted an additional facility of Fifty Thousand United States Dollars (USD$ 50,000.00) on the 2nd of February, 2008. This brought the total amount owed by the Defendant to Ninety-three thousand one hundred and ten dollars forty. Nine cents (US$ 93,110.49.
The Defendant again requested another loan facility of Fifty Thousand United States Dollars (USD$ 50,000.00.) on the 24th of April, 2008 and the same was granted on the 2nd of July 2008 bringing her total indebtedness One Hundred and Forty-One Thousand Seven Hundred and Twenty-Eight United States Dollars Eleven Cents (USD$ 141, 728.11).
Another request for a loan facility of Twenty-Five Thousand United States Dollars (USD$ 25, 000.00.) was made by Defendant on the 11th of October, 2010 and same was granted by the Plaintiff. This, according to the Plaintiff brought her total indebtedness to One Hundred and Fifty-Eight Thousand One Hundred and Fifteen United States Dollars Thirty-Nine Cents (USD$ 158,115.39).
Following this the Defendant requested that her loan be restructured and the same was restructured by the Plaintiff on the 2nd of June, 2013. Upon the said restructuring, the Defendant’s indebtedness which stood at Two Hundred and Twenty-Four Thousand Five Hundred and Twenty United States Dollars Eighty-Nine Cents (USD$ 224,520.89.) was to be paid at an inte