October 22, 2018
HIGH COURT
GHANA
CORAM
AI Generated Summary
Justice Eric K. Baffour of the High Court adjudicated a debt recovery and mortgage enforcement dispute involving multiple facilities extended by a financial institution to the 1st Defendant for vehicle acquisitions under contracts with Zain and Vodafone Ghana, supplemented by overdrafts. The facilities were secured by assignments of vehicles, legal mortgages over properties at Tantra Hill and East Legon owned by Isaac Osei Agyapong (4th Defendant), Yaa Bediako-Poku (5th Defendant), and Ruby Homer (6th Defendant), and directors’ guarantees by the 2nd and 3rd Defendants. Following defaults and a request for reconciliation, the court appointed Mr. Antwi Boasoako, Director of Finance of the Judicial Service, as referee under Order 28. His report (Ex ‘CE1’) fixed the 1st Defendant’s indebtedness at GH5,522,202.31 as at 31 October 2014, rising with interest thereafter. The court adopted the report, held the 2nd and 3rd Defendants jointly and severally liable under Ex ‘W’, and, relying on Ex ‘EE’, ‘FF’ and ‘GG’, ordered judicial sale of the mortgaged properties to satisfy the debt. Costs were awarded at 3% of the principal sum.
JUDGMENT
Plaintiff claim the following reliefs endorsed on its amended writ issued against the Defendants:
a. An order for the recovery of an amount Five Million Five Hundred and Twenty Two Thousand Two Hundred and Two Ghana Cedis Thirty One Pesewas (GH¢5,522,202.31) being the loan facility granted to the 1st Defendant by the Plaintiff.
b. Interest on relief (i) supra at 25.95% per annum with effect from 31st of October, 2014 till date of final payment.
c. Penal interest on relief (i) from 31st of October, 2014 till date of final payment
d. Cost of instituting this action including solicitor’s cost
e. Such further order(s) as this honourable court deem fit.
Or in the alternative
f. Judicial sale of legal mortgage property on parcel No 909, Block 2, section 2001 situate at Tantra Hill, Accra belonging to the 4th Defendant.
g. A judicial sale of the legal mortgage over property on parcel No 389, Block 10, section 114 situate at East Legon, Accra belonging to the 5th Defendant.
h. A judicial sale of legal mortgage over property situate at East Legon, Accra belonging to the 6th Defendant.
Plaintiff claim to have advanced a number loan facilities to the 1st Defendant. The first of it being an offer of $488,565.00 at an interest rate of 14% per annum and a default rate of 21% per annum for the purpose of financing the acquisition of 25 vehicles under a contract with Zain and which was required to be repaid within a period of 24 months. To Plaintiff 1st Defendant secured the loan with an assignment of the 25 vehicles purchased, a legal mortgage over a property situate at Tantra Hill and joint and several guarantees of the 2nd and 3rd Defendants.
The second facility is alleged to be an amount of One Million Three Hundred and Fifteen Thousand Nine Hundred and Forty-Four US Dollars ($1,315,944.00) granted to 1st Defendant at an interest rate of 12.5% per annum for the purpose of financing the acquisition of 35 vehicles under a contract that 1st Defendant had with Vodafone Ghana. And that this loan was to be repaid in 24 equal monthly principal of $54,831.00 plus interest of 12.5% per annum with the expiry date for the loan being 30th of November, 2012. That there was also an offer letter of 3rd November, 2010 with an overdraft facility of $200,000.00 and the interest rate of 27.95% per annum. This second loan facility was secured with the following securities: a legal mortgage over property at Tantra Hill belonging to 4th Defendant, another one at East L