UT FINANCIAL SERVICES LTD v. FRANK KOFI AGYEMAN PREMPEH

On 11-12-2009 the Plaintiff herein issued a writ in which it claims the following reliefs against the Defendant. i. Recovery of an amount of GH¢289,841.45 which became due and owing as at 29-11-2009 arising out of a loan facility granted to the Defendant. ii. A further recovery of an amount of GH¢10,059.00 which became due and owing as at 21-10-2009 arising out of an auto loan facility granted the Defendant. iii. Interest at the agreed rate of 6% and 4% in respect of claims (i) and (ii) respectively till date of final payment. iv. And/or alternatively judicial sale of the residential property at South Odorkor and four plots of land at McCarthy Hills.

The averred facts in support of the Plaintiff’s case are that it granted an auto loan and another loan facility to the Defendant in August and October, 2008 at agreed interest of 4% and 6% per month respectively. The Defendant used the vehicle he bought, that is VW Touareq with Registration No. GS 2500 Z as well as landed property at South Odorkor and McCarthy Hills as security. As at 21-10-2009 the Defendant’s indebtedness on the auto loan stood at GH¢10,095.00 whilst that of the other facility stood at GH¢289,841.15 which the Defendant failed to pay thus the Plaintiff’s action.

In a statement of defence the Defendant admits taking the two facilities. However he disputes the interest rates. He also claims he has fully settled the auto loan in or around December, 2009. He however admits providing security for the said loans. The Defendant complains that because of his insufficient literacy rate the Plaintiff should have explained the terms of the facilities through a jurat which Plaintiff failed to do. The Defendant then counterclaims for various declaratory reliefs and orders which is not worth setting out for he did not appear at the trial to testify.

In reply the Plaintiff admits the Defendant paid off the auto loan but that was six days after the writ was issued. The Plaintiff also says the Defendant has never showed that he is illiterate so that there was no need for a jurat.

From the pleadings the relevant issue thus remaining is whether the Plaintiff is entitled to recover the sum of GH¢289,841.45 and interest of 6% from 29-11-2009 to date of payment.

As indicated the Defendant and his Counsel did not appear at the trial. The Plaintiff representative, Rachael Aku Adjamatey appeared and gave undisputed evidence. He tendered the Loan Agreement (Exhibit A) which showed that the Defendant took