SALOME OPOKU AGYEMANG v. FREDERICK KYEI

JUDGMENT

The endorsement on the Plaintiff’s writ of summons issued from the registry of this court on 11/06/2012 reads as follows:

The Recovery of liquidated cash sum of GH¢ 50,400.00 inclusive of interest being financial facility which the Plaintiff advanced to the defendant towards the expansion of the defendant’s business somewhere in 2003 but which said amount the defendant has refused to tender and or repay same to Plaintiff despite several acknowledgments and rescheduling of repayments.

A summary of the Plaintiff’s case is that somewhere in the year 2003, the defendant approached her for some financial assistance towards the expansion of his business with a firm binding agreement that the defendant would give the Plaintiff 5% of that amount per month as interest. Irrespective of higher interests charged by financial institutions such as the UT Financial Services (10%), the Plaintiff gave an amount of GH¢ 10,000.00 to the Defendant on the agreed terms. It is the Plaintiff’s case that the Defendant has refused to repay her money together with the agreed interest.

The case of the Defendant is that the Plaintiff expressed interest in investing her money in the local rice business of Frederick Kyei Enterprise Ltd. He negotiated with its director and invested an initial amount of GH¢ 4,800.00 at an agreed interest rate of 10% which was subsequently paid to her and that account closed. A second investment of GH¢10,000.00 at an interest rate of 10% was made which she subsequently withdrew both the principal and interest. Thereafter, she made a third investment of GH¢10,000.00 at an agreed interest of 5% and when interest had accrued to GH¢ 4,000.00, the Plaintiff directed the Company to add it to the principal. Thus, her new investment stood at GH¢14,000.00. A receipt on this amount was issued to the Plaintiff and the subsequent accrued interest of GH¢6000.00 was paid to the Plaintiff’s son upon her instruction whilst she was abroad. Frederick Kyei Enterprise Ltd encountered some difficulties resulting from non-payment of supplies made to some government agencies which brought the company’s operations to a halt in the year 2006.

Three issues were set down for trial but an additional issue arises as a result of the amended statement of defence filed by the Defendant on 04/01/2014. These are the issues:

1. Whether the Ten Thousand Ghana Cedis (GH¢10,000.00) Plaintiff gave to Defendant was a financial assistance to Defendant or an investment in Defendant