SOCIETE GENERALE GHANA LTD v. AL-SAFA INTERNATIONAL TRADING LTD & MURKTAZA KHAN
2016
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP ERIC KYEI BAFFOUR JUSTICE OF THE HIGH COURT
Areas of Law
- Civil Procedure
- Contract Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
Plaintiff sought recovery of GHc369,209.68 plus interest for unpaid overdraft and revolving loan facilities granted to 1st defendant, with repayment guaranteed by 2nd defendant. The 2nd defendant's defense was struck out due to non-compliance with court orders, leading the court to proceed with plaintiff's unchallenged evidence. Judgment was entered for the plaintiff for the full amount plus interest and costs.
JUDGMENT
Plaintiff claims jointly and severally the following reliefs endorsed on its writ issued against the defendants :
i. The total sum of GHc369.209.68 being the outstanding balance and accrued interest as at 31st March, 2014 on an overdraft and revolving loan facilities granted to the 1st defendant by the plaintiff.
ii. Interest at the prevailing bank rate on the said GHc369, 209.68 from 1st April, 2014 till the final payment.
iii. Further or other reliefs.
In an eight paragraph statement of claim the plaintiff avers that on the 5th of March, 2014 upon 1st defendant’s request it approved and granted an overdraft facility of Ghc200.000 and a revolving loan facility of GHc150.000.00 to the 1st defendant which was to be retired within twelve months of disbursement. The loan granted had an interest rate of 25.5% per annum collectible monthly in arrears and a penal rate of 6% above the interest rate. Besides, in the event of expiration of the loan any amount of the loan due and unpaid was to attract another penal rate of 35.5% per annum. 2nd defendant agreed to guarantee the due repayment of the loan which he has failed to do and hence the reliefs it seeks before the court.
Judgment in default of appearance had been taken against the 1st defendant and what is left to be determined is in respect of the guarantee plaintiff claim was issued by 2nd defendant. 2nd defendant filed an appearance and a defence to the claim.
Accordingly the pre trial Judge stated two main issues for determination and these were:
1. Whether or not the plaintiff is entitled to an amount of Ghc 369,209.68 or any part thereof
2. Whether or not the interest charged on the facilities is unconscionable.
As part of the preparations towards the trial the court ordered the plaintiff and 2nd defendant to file their respective documents and witness statements. Plaintiff duly complied and filed same. 2nd defendant failed to comply and the court invoked its powers under Rule 7A of Order 32 of the High Court (Civil Procedure) Rules as inserted by the High Court (Civil Procedure) Amendment Rules, CI 87 to strike out the statement of defence of the 2nd defendant. As same had been struck out the court does not find it as serving any useful purpose to recount what 2nd defendant claims to be his defence in the action as there is none at the moment.
The case management conference nonetheless proceeded with the admission of the witness statement of the plaintiff’s representative, Diana Opp