WILLIAM QUARTEY & ANOTHER v. NEIL HAMMOND & 2 ORS
2016
COURT OF APPEAL
GHANA
CORAM
- KANYOKE, JA (PRESIDING)
- ACQUAYE, JA
- DZAMEFE, JA
Areas of Law
- Civil Procedure
- Contract Law
- Property and Real Estate Law
2016
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
This case involves an appeal against the dismissal of a notice of claim filed by claimants regarding a property that was to be auctioned to satisfy a judgment debt. The Court of Appeal found that the trial court erred in dismissing the claimants' interpleader action. The court held that the registrar's failure to comply with Order 44 upon receiving the notice of claim was fatal to the proceedings. The court also found that the claimants had filed their notice of claim within the time allowed by law. The appeal was successful, resulting in the auction sale being set aside and an order for the interpleader action to be heard by a differently constituted court. The case highlights the importance of following proper procedures in execution proceedings, particularly when third-party claims are involved, and underscores the need to protect the rights of those not party to the original suit but whose property interests may be affected.
DZAMEFE, JA
The plaintiff/respondent issued this writ of summons against the defendant/judgment debtors in the High Court, Commercial Division, Accra for the following reliefs:
1. Recovery of the sum of Gh¢288, 419. 87 being the outstanding amount due on the facility granted the 1st Defendant on 26th June 2008, repayment of which was guaranteed by the 2nd Defendant but the payment of which the defendants have failed and/or neglected to settle.
2. Interest accruing after 26th June 2008 at the rate of 10% per month calculated on a compound basis on all outstanding balance up to and inclusive of the date of final payment.
3. Costs The plaintiff in his statement of claim averred he is the Chief Executive Officer (CEO) of the 2nd plaintiff Foundation.
The 1st defendant is the Managing Director of a travel agency in Accra and the 2nd defendant his spouse.
In June 2008 the plaintiff’s granted 1st defendant company the sum of Gh¢20, 000. 00 as a loan facility for its business on agreed terms. The interest rate was fixed at 10% per month calculated on compound basis.
The facility together with interest was for a period of one month from 26th June 2008 to 26th July 2008. As security for the facility the 2nd defendant executed a personal guarantee to be liable in the event of a default on the part of the 1st defendant company.
The defendants accepted the terms and conditions upon which the facility was granted by signing a copy of the offer dated 26th June 2008. Upon receipt of the cash the sum of Gh¢20, 000. 00 on 26th June 2008, the defendants issued the plaintiffs with post-dated cheques to cover the sums due the plaintiffs.
They were dishonoured when the time was due and presented to the bank.
All efforts by the plaintiffs to make the defendants settle their indebtedness have proved futile hence this suit.
According to the plaintiff as at 26th October 2010, defendants indebtedness stood at Gh¢337, 196. 00. The plaintiff obtained judgment against the defendants on 10th August 2011. Entry of judgment was served on defendants by publication in the 11th November 2011 edition of the “Daily Graphic” Newspaper after which the disputed property which was used as security for the loan was attached by the Registrar of the court for sale.
Notice of the application for reserved price was served on the judgment debtor by publication in the 11th July 2014 edition of the “Daily Graphic”. Upon the grant of the application; Notice of the auction sale of the propert