STANBIC BANK GHANA LIMITED v. EMMANUEL ADDO

JUDGMENT

This is an action by the Plaintiff Bank to recover the outstanding balance of an over draft facility (O/D) of Forty-Five Thousand Ghana Cedis (GH¢45,000.00) which was granted to the Defendant in the year 2007.

In its statement of claim filed on 28/09/2012, the Plaintiff averred that it initially advanced a term loan of Thirty Thousand Ghana Cedis (GH¢ 30,000.00) together with the O/D but the term loan was paid off in the course of time. The amount which remained unpaid on the enhanced O/D stood at Eighty- Five Thousand, Two hundred and Forty-Two Ghana Cedis, Fifty-Four Pesewas (GH¢85,242.54) as at 06/08/2012.

It is also the Plaintiff’s case that by a facility letter dated 18/01/2011, the outstanding balance on the O/D in the sum of Ninety Thousand, Seven Hundred and Thirty-One Ghana Cedis, and Thirty-Two Pesewas was converted into a loan. Per this facility letter, any sum which was due but remained unpaid attracted an interest of 10% above the Plaintiff’s base rate prevailing from time to time.

The facility was secured by a deed of mortgage dated 13/09/2007 which was duly executed by the Defendant.

The Defendant’s version of these financial transactions as per his statement of Defence filed on 7/11/2012 is that after he had paid off the loan, he was granted an additional amount of forty Thousand Ghana Cedis (GH¢40,000.00) which brought the O/D facility to Eighty-Five Thousand Ghana Cedis (GH¢85,000.00). After signing the facility Letter dated 18/01/2011, the Defendant averred that he discovered that the O/D balance was below the sum of Ninety Thousand, Seven Hundred and Thirty-One Ghana Cedis, Thirty-Two Pesewas (GH¢90,731.32). He attributed the difference to interest over charge of 29% and 30% instead of the agreed 23.5%. He caused his lawyers to notify the Plaintiff who agreed to refund the over charges to him but this did not reflect in his statement of account. Meanwhile, he stated that an agreement was reached whereby the Plaintiff allowed him to make monthly payments of GH¢2,000.00.

The Defendant pleaded fraud and gave particulars to that effect i.e.:

(i) The Plaintiff deliberately over charging the Defendant with an interest rate that was not agreed upon.

(ii) Inflating the amount of money due to be paid by Defendant and further entering into an agreement with him based on those figures.

Besides, the Defendant pleaded that the date for the conversion of the O/D into a loan ought to have been 31/08/2009. The Defendant then countercl