SOCIETE GENERALE, GHANA LTD v. M.K.AWI ENTERPRISE LTD & FRANCIS MAWUNYO AWI
2018
HIGH COURT
GHANA
CORAM
- ERIC BAAH
Areas of Law
- Banking and Finance Law
- Contract Law
- Civil Procedure
2018
HIGH COURT
GHANA
CORAM
AI Generated Summary
This case involves a dispute between a bank (plaintiff) and its customers (defendants) over a restructured loan. The court found that the plaintiff had indeed granted a restructured loan to the 1st defendant, which was guaranteed by the 2nd defendant with his property as security. The defendants failed to fully repay the loan, resulting in an outstanding balance. The court appointed an independent auditor to reconcile the accounts, which corroborated the plaintiff's claims. The court held that the defendants were indebted to the plaintiff and ordered them to repay the outstanding amount plus interest. Additionally, the court ordered the judicial sale of the 2nd defendant's property that was used as security. The judgment highlights the nature of restructured loans, the evidentiary value of expert reports, and the importance of proper documentation in banking transactions.
JUDGMENT
A. INTRODUCTION
Per its writ of summons dated 20 February 2015, the plaintiff claims against the defendants jointly and severally for:
a) GH¢47,719.00 being the outstanding balance and accrued interest as at 31 December 2014 on banking facilities granted to the 1s' defendant by the plaintiff.
b) Interest at the prevailing bank rate on the said GH¢47,719.00 from 1st January 2015 until date of final judgment.
c) An order for the judicial sale of the 2nd defendant's property situated in and known as #B8, Ho-Bankoe, charged to the plaintiff by the 2nd defendants; and
d) Further or other relief.
The plaintiff and the defendants each called a witness. The plaintiff's witness was Eric Kuotey who relied on his witness statement filed on 29 June, 2015. He testified on 1 February 2018. Defendants' witness was Francis Mawunyo Awi (2nd defendant) who testified on 24 May, 2018 by relying on his witness statement filed for defendants on 21 July, 2015. On 28 April, 2016 Intelysis audit company was appointed by the court to reconcile the accounts between the parties and present a report to the court. The parties submited their records to the audit firm for the task. On 2 February, 2017, Ben Korley, a managing partner of Interlysis and a chartered accountant, testified and presented the report of his firm. It was admitted and marked exhibit CE1. I will revert to the testimonies of the witnesses for the parties and the court witness in the determination of the issues set down when necessary.
B. ISSUES
The following issues were set down for the determination of the case.
Whether or not the plaintiff granted a restructured loan facility to the 1st defendant.
Whether or not the defendants have repaid the said facility.
Whether or not the defendants are indebted to the plaintiff.
a. Whether or not the plaintiff granted a restructured loan to the defendants
In paragraph 3 of the statement of claim, and in paragraph 8 of the evidence (witness statement) of the plaintiff's sole witness, Eric Kuokey, the plaintiff asserted that the 1st defendant was granted a restructured loan of GH¢36,445.00, to offset the outstanding balance on 1ST defendant's overdraft facility:
Under cross-examination the plaintiff's witness maintained that the 1st defendant was indeed granted the facility of GH¢36.445.00.
The plaintiff's case was that, the said grant was used to offset the balance on the existing overdraft facility, leaving a credit balance of GH¢87.16.
Inspite of tha