UNIVERSAL MERCHANT BANK LTD v. AKOSOMBO TEXTILES LIMITED

JUDGMENT

Plaintiff claims the following reliefs endorsed on its writ issued against the defendant

i. Recovery of the sum of Ghc2, 092,984.85 (Two Million, Ninety two Thousand, Nine Hundred and eighty-Four Ghana cedis, Eighty-Five Pesewas)

ii. Interest the sum of Ghc2, 092,984.85 at the rate of 5% per annum above the prevailing base rate of the Plaintiff from 31st July, 2014 till date of final judgment.

iii. Recovery of the sum US$1,104,732.94 (One Million, One Hundred and Four Thousand Seven Hundred and Thirty-Two United States Dollars, Ninety-Four Cents) or its cedi equivalent.

iv. Interest on the sum of US$1,104,732.94 at the rate of 12% per annum from 31st July, 2014 till date of final payment

v. Judicial sale of the mortgage/charged properties in satisfaction of the judgment debt

In the statement of claim that accompanied the writ, plaintiff claims that it disbursed a number of loan facilities to the defendant and as defendant could not meet up with the repayments schedules the loans were restructured for the defendant. That the restructured loan facilities came to an amount Ghc1, 956,250.00 and an overdraft facility of US$1.000.000.00. The restructured facility had a retirement date of 31st December, 2014.

To plaintiff as defendant defaulted it called in the facilities and demanded the repayment of the entire sum of monies. And yet the defendant has failed to repay the monies claimed together with the penal interest as agreed between the parties per the agreement they entered into and defendant will not repay the facilities unless compelled by the court to pay.

Defendant in its statement of defence and counterclaimed denied the claim of the plaintiff claiming that plaintiff unduly delayed in the disbursement of the loan thereby defeating the purpose for which the loan was to be provided it as well as exposing it to third party contractual obligations. And as plaintiff frustrated the timelines set it lies ill in the mouth of the plaintiff to complain about the defendant’s inability to service the loans on the agreed terms between the parties. Defendant also denied any entitlement of penal charges to the plaintiff. Defendant accordingly counterclaimed for the following reliefs:

i. A declaration that the Plaintiff failed, refused and/or neglected in discharging its financial obligations to the Defendant herein in terms of the timely disbursement of the loans, the subject matter in dispute.

ii. A further declaration that as a direct result of t