REPUBLIC v. JAMES TOWN CIRCUIT COURT JUDGE; EX PARTE ANNOR

The High Court (Taylor J.) considered an application for certiorari by a landlord who had obtained judgment against Kapen Enterprises Ltd. for rent arrears and mesne profits and levied execution on the companys chattels. Ghana Commercial Bank interpleaded, asserting a floating debenture dated 11 April 1972 over stock-in-trade and equipment as security for an overdraft, though the debenture had not been registered. The James Town Circuit Court accepted the banks position, reasoning that, under section 6 of the Companies Code (Act 179) and section 46 of the Banking Act (Act 339), a companys debenture in favour of a bank was not void for non-registration, and it ordered release of the attached assets and payment of auctioneers costs. Taylor J. analysed the nature of floating charges and priority, emphasising crystallisation and rejecting any blanket precedence over execution creditors, examined the mandatory registration regime under sections 107 and 111 of Act 179 and found no exemption for banks, and held Cohen per incuriam for ignoring the Code. Concluding the circuit courts speaking order contained errors of law, he granted certiorari, quashed the orders, kept the attachment in place, and awarded costs against the bank.