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SARFO v. GHANA COMMERCIAL BANK LTD.

1990

HIGH COURT

GHANA

CORAM

  • LUTTERODT J

Areas of Law

  • Banking and Finance Law
  • Contract Law
  • Civil Procedure

AI Generated Summary

Lutterodt J adjudicated a dispute between a long-standing banking customer and his bank concerning wrongful honoring and dishonoring of cheques and alleged consequential loss. The customer sought a declaration and refund for a ¢700,000 debit, interest, and ¢5 million damages, asserting the bank honored a cheque he had countermanded and then wrongfully dishonored cheque A/13575617 to a supplier, harming his reputation and business plans. After submissions to judgment on the declaratory and refund reliefs and on the counterclaim, the court focused on damages. Evidence showed the overdraft facility had expired and any renewal had not been communicated or accepted; although some cheques were honored, no binding overdraft agreement existed. Applying authorities and banking principles, the court held that drawing beyond one’s balance is merely a request for a loan, and without express or implied agreement, the bank was not obliged to honor the second cheque. The customer failed to prove causation, and the action was dismissed.

JUDGMENT