2021
SUPREME COURT
GHANA
CORAM
AI Generated Summary
The Supreme Court of Ghana, per Amadu JSC, dismissed the Appellants’ further appeal from the Court of Appeal’s decision in a dispute over three Memoranda of Understanding by which the Respondent advanced US$400,000, US$200,000, and GHS100,000 to the Appellants, a forex bureau and bank. The Appellants newly argued illegality under Cap 176 (moneylenders), Act 71 (Exchange Control), and Act 723 (Foreign Exchange), and challenged interest as unconscionable under Cap 175. The Court held the transactions were investments, not illegal moneylending; dealings were lawful with authorized dealers; and even if minimal illegality existed, discretion supported restitution. Crucially, the Court corrected interest: post-termination, C.I.52 mandates prevailing simple bank rates, with USD interest at the prevailing New York rate and the GHS sum at the 91-day Treasury Bill rate. The appeal failed except for recalibration of interest.
AMADU JSC
(1) This appeal is from the decision of the Court of Appeal dated 2nd May 2013 which dismissed an appeal by the Defendants/ Appellants/Appellants (the Appellants) from the judgment of the High Court in favour of Plaintiff/Respondent/Respondent (‘the Respondents’).
(2) In the High Court, the Respondent claimed against the Appellants per for an amended writ of summons filed on 7/9/2011 the following reliefs;
“(1) An order for the recovery of the amount of US$400,000 (Four
Hundred Thousand Dollars) paid to the Defendants at their request and supported by MEMORANDUM OF UNDERSTANDING dated 17th day of May 2006 and signed by both parties and their witnesses and which the Defendants have failed to pay to the Plaintiff despite the abrogation of the said MEMORANDUM OF UNDERSTANDING by the Defendants themselves.
(2) Interest on the above US$400,000 (Four Hundred Thousand
Dollars) at the rate of 3% (three percent) per month from May 2006 up to date of final payment of the US$400,000 (Four Hundred Thousand Dollars).
(3) An Order for the recovery of an amount of US$200,000 (Two
Hundred Thousand Dollars) paid to the Defendants by the Plaintiff at Defendants request and supported by MEMORANDUM OF UNDERSTANDING dated 6th day of August 2008 and signed by both parties and their witnesses and which the Defendants have failed to pay to the Plaintiff despite the abrogation of the MEMORANDUM OF UNDERSTANDING by the Defendants themselves.
(4) Interest at the rate of 3% per month (three percent) on the
above US$200,000 (Two Hundred Thousand Dollars) from February 2009 up till date of final payment of the US$200,000 (Two Hundred Thousand Dollars).
(5) An Order for the Recovery of an amount of GHC100,000 (One
Hundred Thousand Ghana Cedis) paid to the Defendants by the Plaintiff at the Defendants’ request and supported by MEMORANDUM OF UNDERSTANDING dated 13th day of August 2008 and signed by both parties and their witnesses and which the Defendants have failed to pay to the Plaintiff despite the abrogation of the MEMORANDUM OF UNDERSTANDING by the Defendants themselves.
(6) Interest on the said GHC100,000 (One Hundred Thousand
Ghana Cedis) at the rate of 2.5% (two point five percent) from May 2009 up to date of final payment of the GHC100,000.00 (one hundred thousand Ghana Cedis).
(7) Any other order or orders as to this court may seem just”.
(3) At the close of trial, though the Learned High Court Judge found in favour of the Respondent, she did not grant