SULEMANA ISSAHAK v. AZIZ ABDULAI

JUDGMENT

INTRODUCTION

1. This judgment relates to a loan contract.

2. On 3

rd August, 2022 the plaintiff instituted this action against the defendant for the

following reliefs:

a. An order to recover his car (Mercedes Benz-ML-350) given to the defendant

as collateral for a loan of GHS11,000.00.

b. A declaration that the defendant is entitled to GHS15,500.oo being the loan

amount plus interest accrued on same.

c. Costs.”

3. The defendant filed a defence and counterclaimed as follows:

a. The payment of GHS15,500.00 being the amount owed the defendant by the

plaintiff.

b. Interest on the GHS15,500.00 at the prevailing bank interest rate from April,

2022 till date of final payment.

c. Damages for breach of contract.

d. Costs including legal fees.

4. On 2nd November, 2022 this court granted an interlocutory injunction directing that

the car used as collateral be parked at the court premises until final determination of

this case.

5. The respective cases of the parties herein are detailed below.

PLAINTIFF’S CASE

6. According to the plaintiff on 9th April, 2021 parties herein executed an agreement,

Exhibit A, where he borrowed from the defendant an amount of GHS11,000.00 with

an interest of GHS4,500.00. The loan was to be paid within two months, thus ending

31st May, 2021 as stated in Exhibit A. He used his car, a Mercedes Benz ML-350, as

collateral. Plaintiff averred that in the said Exhibit A, parties agreed that in default,

the defendant was at liberty to use the collateral to secure a loan. He stated that he

faced financial difficulties in paying the loan and interest. However, in July 2022 he

approached the defendant to pay the amount owed and take back his car. Upon

approaching the defendant, plaintiff stated that the defendant would not give out the

car unless he (plaintiff) pays an additional GHS50,000.00. Hence, he instituted this

action.

DEFENDANT’S CASE

7. Defendant testified that this present loan is the fourth between the parties herein.

According to him, plaintiff was to pay the loan and interest withing two (2) weeks.

However, it took over 12 months and when plaintiff reached out sometime in July

2022, he stated that the interest had to be revised because of the long period, but

plaintiff refused. Defendant added that he had expended GHS5,000.00 in maintaining

the car. To him, plaintiff has breached their agreement and so prays for his

counterclaim.

ISSUES FOR DETERMINATION

8. The only issue borne