TAYLOR & TAYLOR CO. LTD vs BANK OF GHANA
2015
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP K. A. OFORI-ATTA J.
Areas of Law
- Banking and Finance Law
- Civil Procedure
2015
HIGH COURT
GHANA
CORAM
AI Generated Summary
This case involves a dispute over the exchange rate applied to a judgment debt payment. The Plaintiff sued the Defendant for underpayment due to using an outdated exchange rate. The court held that the correct exchange rate should be the one prevailing on the date of actual payment (5th June 2014), not when the funds were set aside (March 2014). The court reasoned that the judgment creditor should receive an amount in local currency equivalent to the judgment debt in foreign currency at the time of payment. The court ruled in favor of the Plaintiff, granting the recovery of the claimed amount and establishing that setting aside funds does not constitute payment. This decision emphasizes the importance of using current exchange rates in international financial transactions and clarifies when payment is considered to have occurred in legal proceedings.
On 10th July, 2014 the Plaintiff caused the writ of summons herein to be issued against the Defendant for the following reliefs: -“1. Recovery of the sum of GH¢3, 746, 817. 65 being money due the plaintiff by reason of the defendants failure to pay judgment debt at the exchange rate prevailing at the date of payment.
2. Interest on the sum of GH 1553, 746, 815. 65 calculated at the current bank rate from 28th March, 2014 to date of payment”. The facts of the plaintiff’s case, from the statement of claim are that it obtained judgment against the Attorney-General for the recovery of the sum of £6, 500. 107. 64 inclusive of interest owed the plaintiff by the Ministry of Health.
In execution of the judgment the plaintiff commenced garnishee proceedings against the defendant herein.
A representative of the garnishee certified that it held funds of the defendant sufficient to satisfy the judgment debt.
Subsequently, on 24th March, 2014 the order nisi was made absolute and the garnishee was directed to pay the judgment debt inclusive of interest to the plaintiff.
The said order absolute was served on the garnishee on 28th March, 2014. It was on 5th June, 2014, about seventy-three days later that the garnishee paid the sum of GH¢15, 488, 371. 15 to the plaintiff.
It is contended that the garnishee in making the payment applied the exchange rate of £1 to GH¢3. 5744 instead of the prevailing rate of £1 to GH¢3. 9920. It has accordingly been pleaded in paragraph 13 of the statement of claim that: -“Payment of the judgment debt and interest in cedis at the rate of exchange other than that prevailing at the date of payment is without any basis in law”. All efforts to resolve the matter amicably having failed the plaintiff resorted to the present action.
In defence it has been alleged that upon being served with the order absolute the cedi equivalent of the judgment debt was deposited into an account purposely set up for the case.
The reason was that defendant was bound by law and practice to effect payment to Ghanaian entities only in local currency i. e. the cedi.
It has further been averred that the defendant paid the sum of GH¢15, 488, 371. 15 to the plaintiff in satisfaction of its claims against the defendant on 5th June, 2014. Accordingly the plaintiff has no further legitimate claims against defendant.
The defence to the present action is summed up in paragraph 17 of the amended statement of defence as follows: -“…the defendant says it acted properly